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ARCHITECT 

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Architect of the Capitol 

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EFFECTIVE DATE: July 14, 2022 

SUBJECT: Contracting Manual 

SERIES: Procurement 

United States Government 

ORDER34-1 

OFFICE OF PRIMARY RESPONSIBILITY: Office of the Chief Engineer, Design and 

Construction Acquisition Division 

SCOPE: The requirements included in this Contracting Manual (CM) are applicable 

agencywide. This CM will be revised periodically to stay up-to-date with current legislation and 

acquisition best practices. Contracting Officers, Architect of the Capitol (AOC) jurisdiction 

heads and supervisors should consult this CM as necessary to ensure compliance in day-to-day 

operations. 

DESCRIPTION: This revised CM is issued to provide ongoing and current policy and 

procedures for the acquisition of supplies services and construction, and provides guidance to 

staff applying those policies and procedures. 

SUMMARY OF CHANGES: The CM has been updated with minor editorial changes 

throughout. Certain definitions were revised. New definitions were added. Certain sections were 

revised consistent with recent changes to federal acquisition rules. Certain sections were revised 

to clarify application of the guidance or acquisition rule. Certain sections · were revised to allow 

the AOC to incorporate some best practices consistent with the Federal Acquisition Regulation 

and some acquisition publications were rescinded and had their substantive language 

incorporated directly into the CM. 

lanton 

Arch' ect of the Capitol 

Doc. No. 220224-02-02 
AOC Order 34-1 Contracting Manual, July 14, 2022 i

ARCHITECT OF THE CAPITOL ORDER 34-1

CONTRACTING MANUAL

TABLE OF CONTENTS:

CHAPTER I. AUTHORITY, POLICY AND ADMINISTRATIVE MATTERS................... 1

1.1. CONTRACTING MANUAL ........................................................................................................1

1.1.1. Purpose ..............................................................................................................................1

1.1.2. Authority ...........................................................................................................................1

1.1.3. Applicability......................................................................................................................1

1.1.4. Arrangement of the Contracting Manual...........................................................................1

1.1.5. Forms.................................................................................................................................1

1.1.6. Amendment of the Contracting Manual............................................................................1

1.1.7. Deviation from the Contracting Manual ...........................................................................1

1.2. DEFINITIONS ..........................................................................................................................2

1.3. PROCUREMENT AUTHORITY AND RESPONSIBILITY...............................................................11

1.3.1. Procurement Authority ....................................................................................................11

1.3.2. Contracting Responsibilities............................................................................................11

1.3.4. Determination and Findings............................................................................................12

1.3.5. Ratification of Unauthorized Commitments ...................................................................13

1.4. GENERAL POLICIES ..............................................................................................................15

1.4.1. Ethical Considerations.....................................................................................................15

1.4.2. Suspected Antitrust Violations........................................................................................15

1.4.3. Documenting Procurement Actions ................................................................................15

1.4.4. Taxes ...............................................................................................................................16

1.4.5. Requests for Information.................................................................................................17

1.4.7. Variation in Quantity.......................................................................................................17

1.4.8. Contractor Team Arrangements......................................................................................17

1.5. CONTRACTOR RESPONSIBILITY ............................................................................................19

1.5.1. General ............................................................................................................................19

1.5.2. Responsible Contractor ...................................................................................................19

1.5.3. Authority .........................................................................................................................19

1.5.4. Minimum Standards for Responsible Prospective Contractors.......................................19

1.5.5. System for Award Management......................................................................................20

1.5.6. Debarment, Suspension and Ineligibility ........................................................................21

1.5.7. Contractor Financial Difficulty or Bankruptcy ...............................................................32

1.5.8. Nonresponsibility Determinations...................................................................................32

1.6. GOVERNMENT FURNISHED PROPERTY .................................................................................33

1.6.1. Scope ...............................................................................................................................33

1.6.2. Identification of GFP in Solicitations..............................................................................33

1.6.3. GFP Responsibilities.......................................................................................................33

1.7. CONTINGENT FEES ...............................................................................................................34

1.7.1. Covenant Against Contingent Fees.................................................................................34

1.7.2. Policy Against Contingent Fees ......................................................................................34

1.7.3. Enforcement ....................................................................................................................34

1.8. BUY AMERICAN ...................................................................................................................34
AOC Order 34-1 Contracting Manual, July 14, 2022 ii

1.8.1. General ............................................................................................................................34

1.8.2. Implementation................................................................................................................35

1.9. CONTRACT REVIEW BOARD .................................................................................................36

1.9.1. Contract Actions..............................................................................................................36

1.9.2. Procedures.......................................................................................................................36

1.10. MARKET RESEARCH...........................................................................................................37

1.10.1. General ..........................................................................................................................37

1.10.2. Requirement ..................................................................................................................37

1.10.3. Sources for Market Research ........................................................................................37

1.11. PROCUREMENT INTEGRITY.................................................................................................38

1.11.1. General ..........................................................................................................................38

1.11.2. Disclosure, Protection and Marking of Contractor Bid or Proposal Information and 

Source Selection Information........................................................................................38

1.11.3. Organizational Conflict of Interest................................................................................39

CHAPTER II. ACQUISITION PLANNING AND COMPETITION ................................... 40

2.1. GENERAL .............................................................................................................................40

2.2. THE ACQUISITION PLAN.......................................................................................................40

2.3. COMPETITION.......................................................................................................................43

2.3.1. Full and Open Competition .............................................................................................43

2.3.2. Full and Open Competition After Excluding Sources.....................................................43

2.3.3. Other Than Full and Open Competition..........................................................................44

2.4. BRAND NAME PRODUCTS.....................................................................................................46

2.4.1. Restrictive Specifications................................................................................................46

2.4.2. Brand Name or Equal......................................................................................................47

2.5. SUBMITTING REQUIREMENTS ...............................................................................................47

2.6. NONPERSONAL SERVICES.....................................................................................................47

CHAPTER III. CONTRACTOR LABOR RELATIONS....................................................... 49

3.1. POLICY.................................................................................................................................49

3.1.1. General ............................................................................................................................49

3.1.2. Contract Administration ..................................................................................................49

3.2. CONVICT LABOR ..................................................................................................................49

3.2.1. General ............................................................................................................................49

3.2.2. Requirement ....................................................................................................................49

3.2.3. Applicability....................................................................................................................49

3.3. WALSH-HEALEY PUBLIC CONTRACTS ACT..........................................................................50

3.3.1. Statutory Requirements...................................................................................................50

3.3.2. Exemptions......................................................................................................................50

3.3.3. Rulings and Interpretations of the Act ............................................................................50

3.3.4. Procedures.......................................................................................................................51

3.4. SERVICE CONTRACT LABOR STANDARDS ............................................................................51

3.4.1. General ............................................................................................................................51

3.4.2. Procedure.........................................................................................................................52

3.5. CONTRACT WORK HOURS AND SAFETY STANDARDS ACT...................................................52

3.5.1. Requirements...................................................................................................................52
AOC Order 34-1 Contracting Manual, July 14, 2022 iii

3.5.2. Applicability....................................................................................................................52

3.6. CONSTRUCTION WAGE RATE REQUIREMENTS STATUTE......................................................53

3.6.1. Overview .........................................................................................................................53

3.6.2. Wage Determinations......................................................................................................53

3.6.3. Types of Wage Determinations.......................................................................................53

3.6.4. General Requirements.....................................................................................................54

3.7. ENFORCING LABOR STANDARDS..........................................................................................54

3.7.1. Policy...............................................................................................................................54

3.7.2. Apprentices and Trainees................................................................................................54

3.7.3. Subcontracts ....................................................................................................................55

3.7.4. Payrolls and Statements...................................................................................................55

3.7.5. Compliance Checking .....................................................................................................55

3.7.6. Withholding From or Suspension of Contract Payments................................................56

3.7.7. Cooperation With the Department of Labor....................................................................57

CHAPTER IV. REQUIRED SOURCES AND SMALL BUSINESS PROGRAM............... 58

4.1. ABILITYONE PROGRAM .......................................................................................................58

4.2. SMALL BUSINESS PROGRAMS...............................................................................................58

4.2.1. Definitions.......................................................................................................................58

4.2.2. Relationship With the Small Business Administration (SBA)........................................58

4.2.3. Responsibilities ...............................................................................................................59

4.2.4. Policy...............................................................................................................................59

4.2.5. Small Business Subcontracting Plan ...............................................................................59

4.2.6. North American Industry Classification System (NAICS) Codes and Size Standards...60

4.2.7. Nonmanufacturer Rule ....................................................................................................61

4.2.8. Locating Small Business Sources....................................................................................61

4.2.9. Procedures for Small Business Set-Asides......................................................................62

4.2.10. Withdrawing a Small Business Set-Aside.....................................................................63

4.2.11. Protesting a Small Business Representation .................................................................63

4.2.12. Recordkeeping and Reporting Requirements................................................................63

CHAPTER V. CONTRACT FUNDING AND PAYMENTS ................................................. 65

5.1. FUNDING REQUIREMENTS ....................................................................................................65

5.1.1. Contracts Conditioned Upon Availability of Funds........................................................65

5.1.2. Contracts Crossing Fiscal Years......................................................................................65

5.1.3. Limitation of Cost or Funds ............................................................................................65

5.2. PAYMENTS ...........................................................................................................................66

5.2.1. Considerations for Progress Payments............................................................................66

5.2.2. Retainage .........................................................................................................................66

5.3. CONTRACT DEBTS................................................................................................................68

5.3.1. General ............................................................................................................................68

5.3.2. Responsibilities and Cooperation Among AOC Officials ..............................................68

5.3.3. Debt Determination and Collection.................................................................................68

5.4. ASSIGNMENT OF CLAIMS......................................................................................................69

5.4.1. General ............................................................................................................................69

5.4.2. Conditions Governing the Assignment of Claims...........................................................69
AOC Order 34-1 Contracting Manual, July 14, 2022 iv

5.4.3. Contract Clause ...............................................................................................................69

5.4.4. Filing Notice of Assignment ...........................................................................................69

5.4.5. Procedures Upon Receipt of Notice of Assignment........................................................69

5.4.6. Further Assignment and Reassignment...........................................................................70

5.4.7. Transfer of Businesses and Corporate Mergers ..............................................................70

CHAPTER VI. PUBLICIZING CONTRACT ACTIONS ..................................................... 71

6.1. POLICY.................................................................................................................................71

6.2. PROCEDURES........................................................................................................................71

6.3. EXCEPTIONS.........................................................................................................................71

CHAPTER VII. SMALL PURCHASES................................................................................... 72

7.1. GENERAL PRINCIPLES ..........................................................................................................72

7.1.1. Competition.....................................................................................................................72

7.1.2. Basis for Award...............................................................................................................72

7.1.3. Sources ............................................................................................................................72

7.1.4. Solicitation of RFQs Less Than 25,000 ..........................................................................72

7.1.5. Simplified Acquisition Procedures..................................................................................73

7.2. TRANSPORTATION................................................................................................................75

7.2.1. F.O.B. Destination...........................................................................................................75

7.2.2. Delivery Vehicle Instructions..........................................................................................75

7.3. PURCHASE CARD PROGRAM.................................................................................................75

7.3.1. Program Objectives.........................................................................................................75

7.3.2. Responsibilities ...............................................................................................................75

7.3.3. Controls...........................................................................................................................76

7.3.4. Card Security...................................................................................................................77

7.3.5. Card Issuance ..................................................................................................................77

7.3.6. Using the Government Purchase Card ............................................................................77

7.3.7. Unauthorized Card Use ...................................................................................................78

7.3.8. Disputes...........................................................................................................................79

7.3.9. Reconciliation of Statement ............................................................................................79

7.3.10. Recordkeeping Requirements........................................................................................79

7.3.11. Review Reports .............................................................................................................80

7.4. ITEMS PURCHASED FOR RESALE IN THE GIFT SHOPS ............................................................81

7.5. BLANKET PURCHASE AGREEMENTS .....................................................................................81

7.5.1. General ............................................................................................................................81

7.5.2. Conditions for Use...........................................................................................................81

7.5.3. Preparing BPAs...............................................................................................................82

7.5.4. Limitations on Use of BPAs............................................................................................82

7.5.5. BPA Reviews ..................................................................................................................82

CHAPTER VIII. TYPES OF CONTRACTS........................................................................... 83

8.1. SELECTING CONTRACT TYPES..............................................................................................83

8.1.1. General ............................................................................................................................83

8.1.2. Fixed-Price Contracts......................................................................................................83

8.1.3. Cost-Reimbursement Contracts.......................................................................................84
AOC Order 34-1 Contracting Manual, July 14, 2022 v

8.1.4. Letter Contracts...............................................................................................................85

8.1.5. Time-and-Material and Labor-Hour Contracts ...............................................................85

8.1.6. Indefinite-Delivery Contracts (IDC) ...............................................................................85

8.2. SERVICE CONTRACTS...........................................................................................................87

8.2.1. General ............................................................................................................................87

8.2.2. Extension of Services......................................................................................................87

8.2.3. Advisory, Assistance and Other Services........................................................................87

8.2.4. Temporary Administrative and Professional Staffing Services ......................................88

8.2.5. Performance Based Acquisition ......................................................................................89

8.3. INFORMATION TECHNOLOGY REQUIREMENTS......................................................................89

8.3.1. Definitions.......................................................................................................................89

8.3.2. Procedures.......................................................................................................................90

8.4. CONSTRUCTION CONTRACTS................................................................................................90

8.4.1. Terms Explained..............................................................................................................90

8.4.2. Procedures.......................................................................................................................91

8.4.3. Liquidated Damages........................................................................................................92

8.4.4. Bonds...............................................................................................................................93

8.5. A/E CONTRACTS ..................................................................................................................94

CHAPTER IX. ACQUISITION PROCESS............................................................................. 97

9.1. NEGOTIATED ACQUISITIONS ................................................................................................97

9.1.1. General ............................................................................................................................97

9.1.2. Source Selection Processes .............................................................................................97

9.1.3. Solicitation Terms and Conditions..................................................................................98

9.1.4. Source Selection Authority ...........................................................................................101

9.1.5. Exchanges With Industry Before Receipt of Proposals ................................................102

9.1.6. Amending Solicitations.................................................................................................103

9.1.7. Solicitation Response Time...........................................................................................103

9.1.8. Handling Proposals........................................................................................................103

9.1.9. Submission, Revision and Withdrawal of Proposals.....................................................104

9.1.10. Oral Presentations........................................................................................................104

9.1.11. Exchanges With Offerors After Receipt of Proposals.................................................105

9.1.12. Proposal Revisions......................................................................................................107

9.1.13. Pre-Award Survey .......................................................................................................107

9.1.14. Evaluating Proposals...................................................................................................107

9.1.15. Contract Award ...........................................................................................................108

9.1.16. Debriefings..................................................................................................................109

9.1.17. Mistakes After Award .................................................................................................110

9.2. SEALED BIDDING ...............................................................................................................110

9.2.1. Preparing an Invitation for Bids....................................................................................110

9.2.2. Bid Submission..............................................................................................................111

9.2.3. Bidding Time.................................................................................................................111

9.2.4. Records of IFB and Abstract of Bids ............................................................................111

9.2.5. Release of Solicitation Mailing List..............................................................................111

9.2.6. Pre-Bid Conference .......................................................................................................111

9.2.7. Amending IFBs .............................................................................................................112
AOC Order 34-1 Contracting Manual, July 14, 2022 vi

9.2.8. Cancellation of IFBs Before Opening ...........................................................................112

9.2.9. Late Bids, Late Modification of Bids or Late Withdrawal of Bids...............................112

9.2.10. Opening Bids...............................................................................................................113

9.2.11. Pre-Award Mistakes in Bids........................................................................................113

9.2.12. Award ..........................................................................................................................114

9.2.13. Award for Sealed Bidding Construction .....................................................................114

9.2.14. Mistakes After Award .................................................................................................114

9.3. TWO-STEP SEALED BIDDING..............................................................................................115

9.4. Unsolicited Proposals.......................................................................................................116

9.5. ACQUISITION OF COMMERCIAL PRODUCTS / SERVICES ......................................................117

CHAPTER X. PROTESTS ...................................................................................................... 120

10.1. DEFINITIONS ....................................................................................................................120

10.2. FORUM FOR PROTEST .......................................................................................................120

10.3. PROCEDURES....................................................................................................................120

CHAPTER XI. EMERGENCY PROCUREMENTS ............................................................ 121

11.1. GENERAL INFORMATION ..................................................................................................121

11.2. DEFINITION. .....................................................................................................................121

11.3. FLEXIBILITIES. .................................................................................................................121

11.4. AVAILABILITY OF THE FINANCIAL MANAGEMENT SYSTEM .............................................122

11.5. USE OF PURCHASE CARDS................................................................................................122

CHAPTER XII. PRICING OF CONTRACT ACTIONS..................................................... 123

12.1. COST AND PRICE ANALYSIS .............................................................................................123

12.2. UNBALANCED PRICING ....................................................................................................124

12.3. PRICE REASONABLENESS DOCUMENTATION ....................................................................124

CHAPTER XIII. CONTRACT ADMINISTRATION.......................................................... 126

13.1. GENERAL GUIDELINES .....................................................................................................126

13.1.1. Overview .....................................................................................................................126

13.1.2. COR.............................................................................................................................126

13.1.3. Post-Award Conference ..............................................................................................127

13.1.4. Contract Modifications................................................................................................127

13.1.5. Change Orders.............................................................................................................128

13.1.6. Constructive Changes..................................................................................................128

13.1.7. Contractor Delivery and Performance.........................................................................128

13.1.8. Exercising Options......................................................................................................129

13.1.9. Suspension of Work and Stop Work Orders...............................................................129

13.2. CONTRACT TERMINATIONS ..............................................................................................130

13.2.1. General ........................................................................................................................130

13.2.2. Termination for Convenience......................................................................................130

13.2.3. Termination for Default...............................................................................................131

13.3. CONTRACT DISPUTES AND APPEALS ................................................................................132

13.3.1. Authority .....................................................................................................................132

13.3.2. Procedures...................................................................................................................132

13.4. NOVATION AND NAME CHANGE AGREEMENTS................................................................134
AOC Order 34-1 Contracting Manual, July 14, 2022 vii

13.4.1. Responsibility for Executing Agreements...................................................................135

13.4.2. Processing Agreements ...............................................................................................135

13.4.3. Applicability of Novation Agreements .......................................................................136

13.5. VALUE ENGINEERING.......................................................................................................137

13.5.1. Processing Value Engineering Change Proposals (VECP).........................................137

13.5.2. Sharing Arrangements.................................................................................................138

13.5.3. Sharing Alternative – No Cost Settlement Method.....................................................140

13.5.4. Relationship to other incentives ..................................................................................140

13.6. CONTRACT CLOSEOUT .....................................................................................................141

APPENDIX A. SUPERSEDED PUBLICATIONS ................................................................ 142

A-1 ORDERS .............................................................................................................................142

A-2 STANDARD OPERATING PROCEDURES (SOPS)...................................................................143

A-3 INFORMATION LETTERS .....................................................................................................145
AOC Order 34-1 Contracting Manual, July 14, 2022 1

CHAPTER I. AUTHORITY, POLICY AND ADMINISTRATIVE MATTERS

1.1. Contracting Manual

1.1.1. Purpose

The Contracting Manual (CM) prescribes uniform policies for the acquisition of 

supplies, services, construction and related services and provide guidance to 

personnel in applying those policies and procedures.

1.1.2. Authority

The CM is issued pursuant to the authority found in 2 U.S.C. § 1801 et seq.

1.1.3. Applicability

The CM shall apply to the contracting of all supplies, services, construction and related services 

made by the Architect of the Capitol (AOC). 

1.1.4. Arrangement of the Contracting Manual

(a) The CM is divided into subject matter chapters, each of which deals with a separate aspect of 

contracting. Each chapter is further divided into sections and paragraphs.

(b) Paragraph identification and citation: chapters are identified by capital Roman numerals; 

sections and subsections are referenced by chapter, section and paragraph – e.g., this paragraph 

1.1.4 is chapter 1, section 1, paragraph 4.

1.1.5. Forms

Sample forms and templates referenced in this manual are located on the shared AOC network 

and are also available on the agency’s intranet portal. 

1.1.6. Amendment of the Contracting Manual

(a) Periodic changes and minor revisions to the CM shall be issued by the Head Contracting 

Authority (HCA) without formal coordination of the publication if such changes and minor 

revisions and do not substantially impact AOC implementation or resources.

(b) Changes and revisions to the CM shall be accomplished by revisions to the CM indicated by 

a revision date found in the footer.

(c) Any recommended changes or revisions to the CM shall be submitted to the Chief of the 

Design and Construction Acquisition Division (DCA) or the Chief Supplies, Services, and 

Material Management Division (SSMMD), as applicable.

1.1.7. Deviation from the Contracting Manual

(a) Circumstances may arise in which established policies, orders, directives or business 

practices are not appropriate for a new technique or approach or a specific contractual situation. 

In those cases, a deviation may be deemed necessary. The term deviation includes:

 (1) The use of any business practice inconsistent with any AOC publication, policy, order or 

directive.
AOC Order 34-1 Contracting Manual, July 14, 2022 2

 (2) The use of a clause or provision inconsistent with any policy, order, directive or business 

practice established by the AOC.

(b) To maintain uniformity to the maximum extent possible, deviations should be kept to a 

minimum. It is the Contracting Officer’s (CO) responsibility to request a deviation whenever it is 

in the best interest of the government. A request for approval of any deviation shall be in the 

form of a determination and findings (D&F), reviewed first by one level above the CO, and then 

forwarded to the Chief DCA or the Chief SSMMD, as applicable, for review and approval. The 

D&F shall explain the nature of the deviation and provide the reasons necessitating it. Adequate 

time should be allowed for review and approval of the request. The D&F and approval shall be 

documented in the contract file.

1.2. Definitions

Acceptance. The act of an authorized government representative that results in the government 

assuming ownership of the delivered supplies or services rendered. An inspection to determine 

whether the supplies or services conform to contract specifications must precede acceptance.

Acquisition. Acquiring supplies or services (including construction) by contract. The acquisition 

process begins when agency needs are established and includes the description of requirements, 

solicitation and source selection, contract award, contract financing, contract performance, 

contract administration, and technical and management functions directly related to the 

contracting process.

Anti-Defiency Act (31 U.S.C. § 1341). No officer or employee of the government may create or 

authorize an obligation in excess of the funds available, or in advance of appropriations unless 

otherwise authorized by law. The Act requires fund availability prior to award of any 

procurement. Additionally, government officials may authorize expenditures or obligations from 

only those appropriations or funds for which the official is given express written authority.

Architect of the Capitol. Established as a permanent office in 1876, the Architect is provided 

permanent authority for the care and maintenance of the U.S. Capitol based on Section 1811 of 

Title 2 of the United States Code. The Architect is responsible for the maintenance, operation, 

development and preservation of 18.4 million square feet of buildings and more than 570 acres 

of land across the Capitol complex. This includes the U.S. Capitol, House and Senate office 

buildings, the U.S. Capitol Visitor Center, the Library of Congress, the Supreme Court of the 

United States, the U.S. Botanic Garden, the Capitol Power Plant and other facilities. The 

Architect also provides professional expertise with regard to the preservation of architectural and 

artistic elements entrusted to his care and provides recommendations concerning design, 

construction and maintenance of the facilities and grounds. The Architect is also responsible for 

the upkeep and improvement of U.S. Capitol Grounds and the support of the quadrennial 

inaugural ceremonies and other ceremonies held on Capitol Hill.

Architect-engineer services (A/E). As used by the AOC: A/E are professional services of an 

architectural or engineering nature, as defined by state law, if applicable, that are required to be 
AOC Order 34-1 Contracting Manual, July 14, 2022 3

performed or approved by a person licensed, registered or certified to provide those services; 

professional services of an architectural or engineering nature performed by contract that are 

associated with research, planning, development, design, construction, alteration or repair of real 

property; and those other professional services of an architectural or engineering nature, or 

incidental services, that members of the architectural and engineering professions (and 

individuals in their employ) may logically or justifiably perform, including studies, 

investigations, surveying and mapping, tests, evaluations, consultations, comprehensive 

planning, program management, conceptual designs, plans and specifications, value engineering, 

construction phase services, soils engineering, drawing reviews, preparation of operating and 

maintenance manuals and other related services.

Bid. A response to an invitation for bids (IFB) that, if accepted, binds the bidder (offeror) to 

perform the resulting contract in accordance with the terms and conditions specified in the IFB 

for the price submitted by the bidder.

Bilateral Modification. A bilateral modification (supplemental agreement) is a contract 

modification that is signed by the contractor and the CO. Bilateral modifications are used to:

(1)Make negotiated equitable adjustments resulting from the issuance of a change order

(2)Definitize letter contracts

(3)Reflect other agreements of the parties modifying the terms of contracts

Buy American. Restricts purchasing supplies that are not domestic end products for use within 

the United States. A foreign end product may be purchased if the CO determines that the price of 

the lowest domestic offer is unreasonable or if another exception applies. In construction 

contracts, the Buy American requires, with some exceptions, the use of only domestic 

construction materials/supplies. 

Cardholder. A government employee who has been issued a government purchase card to 

obligate appropriated funds within the limits of their authority.

Cardinal Change. Otherwise known as an out-of-scope change and occurs when the proposed 

change is either of a different type of work than was contained in the original contract scope or is 

of such a magnitude that the total contract value is increased significantly beyond the original 

contract award amount. The change is considered a cardinal change if it does not meet the 

criteria of a within scope change. Cardinal changes are extra work that the contractor can legally 

decline to perform. Cardinal changes are generally charged against currently available funds. 

Cardinal changes must be evaluated from the perspective of the competitive process, as they may 

violate the requirement for competition.

Commercial Product/Service. Any item, other than real property, that is of a type customarily 

used by the general public or by nongovernmental entities and has been sold, leased or licensed 

to the general public including the items with minor modifications of a type not customarily

available in the commercial marketplace made to meet federal government requirements. Minor 

modifications means modifications that do not significantly alter the nongovernmental function 

or essential physical characteristics of an item or component, or change the purpose of a process. 

Factors to be considered in determining whether a modification is minor include the value, size 
AOC Order 34-1 Contracting Manual, July 14, 2022 4

of the modification and the comparative value and size of the final product. Dollar values and 

percentages may be used as guideposts, but are not conclusive evidence that a modification is 

minor. Commercial products/services may also include service contracts of a type offered and 

sold competitively in substantial quantities in the commercial marketplace and can be based on 

established catalog or market prices for specific tasks or specific outcomes to be achieved under 

standard commercial terms and conditions.

Competition. The effort of two or more parties acting independently to secure the business of a 

third party by offering the most favorable terms.

Competition Threshold. The amount at which competition for a requirement must be solicited. 

The competition threshold for the AOC is greater than $10,000.

Construction. To alter, repair or construct structures or other real property – including dredging, 

excavating and painting and includes improvements to all types of AOC facilities.

Contract. A mutually binding legal document that obligates the seller to furnish supplies or 

services (including construction) and the buyer to pay for the supplies or services.

Contracting Manual (CM). The CM is the guide to agency personnel on the execution and 

obligation of appropriated funds in the agency. 

Contracting Officer (CO). The Architect of the Capitol or an individual authorized in writing by 

the Architect of the Capitol to award contract(s) on behalf of the AOC. A CO may be appointed 

by name or position and is subject to the limitations specified in the delegation of authority.

Contracting Officer's Representative (COR). An individual with expertise for the type of work 

performed or supplies provided under contract, who is issued a letter of appointment by the CO

as being responsible for monitoring and reporting contractor compliance with contract terms and 

conditions.

Contractor Suitability. A determination as to whether a contractor and/or their employee is 

eligible or ineligible for access to the Capitol complex based on the results of the contract 

employee’s Criminal History Records Check provided by the U.S. Capitol Police and the EVerify program.

Construction Wage Rates Requirements. The AOC requires that contractor personnel working on 

contracts, purchase orders or task orders in excess of $2,000 for construction, alteration or repair 

of real property, to which the United States is a party, be paid an amount not less than the 

prevailing wage rates as determined by the Secretary of Labor.

Critical Need. A sudden or unexpected occurrence usually characterized by additional work or 

deadlines required by statute, court order, regulation or directive.

Delivery Order (DO). A written order for supplies made within the terms and conditions of an 

existing contract.
AOC Order 34-1 Contracting Manual, July 14, 2022 5

Defense Priorities and Allocations System Program, (DPAS). The DPAS is used to prioritize 

national defense-related contracts/orders throughout the U.S. supply chain in order to support 

military, energy, homeland security, emergency preparedness and critical infrastructure 

requirements.

Determination and Findings (D&F). This refers to a special form of written approval by an 

authorized official that is required by statute, policy or manual as a prerequisite to taking certain 

contracting actions. The determination is a conclusion or decision supported by the findings. The 

findings are statements of fact or rationale essential to support the determination and must cover 

each requirement of the statute or regulation.

Electronic Funds Transfer (EFT) Indicator. A four-character suffix to the unique entity identifier

(UEI). The suffix is assigned at the discretion of the commercial, nonprofit or government entity 

to establish additional System for Award Management (SAM) records for identifying alternative 

EFT accounts for the same entity.

Evaluation Factors. The standards used by the government in a competitive request for proposals 

(RFP) to determine the winning contractor. The government’s solicitation must clearly state the 

factors, significant subfactors and the factors’ relative importance that will be considered in 

evaluating proposals and selecting a source. Once established, these evaluation factors must be 

used in evaluating each offeror’s proposal.

E-Verify. An internet-based free program run by the U.S. government that compares information 

from employees’ Employment Eligibility Verification Form I-9 to data from U.S. government 

records to determine a worker’s employment eligibility in the United States. At the AOC, all 

contracts, regardless of the dollar amount, awarded for supplies, services and construction where 

work is performed at an AOC facility or off-site when the contractor needs access to the AOC 

Information Technology Division (ITD) infrastructure require use of the E-Verify system.

Financial Management System (FMS). FMS is the AOC financial system of record used to 

capture the commitment, obligation and expenditure of AOC funds. The office of primary 

responsibility for this system is the AOC Office of the Chief Financial Officer (OCFO). COs 

shall use this system for AOC contract actions.

Fixed-Price Contract. A type of contract that establishes at the time of contract award a price to 

be paid by the AOC upon completion of contract requirements. Fixed-priced contracts place the 

financial risk for contract performance on the contractor, not the AOC, and do not provide for an 

adjustment in contract price on the basis of the contractor's actual cost to perform the contract.

Free on Board (F.O.B.) Destination. Generally means that the cost of the shipping, risks, 

ownership and responsibility for filing claims for damages to the freight/supplies are the 

responsibility of the vendor (seller) until the agency (buyer) receives and accepts the 

freight/supplies at the agency’s specified delivery site.

F.O.B. Origin. Generally means that the cost of the shipping, risks, ownership and responsibility 

for filing claims for damages to the freight/supplies shipped are the responsibility of the agency 
AOC Order 34-1 Contracting Manual, July 14, 2022 6

(buyer) at the shipper’s dock where ownership and title are assumed by the agency.

Head of Agency. The Architect of the Capitol serves as head of the agency.

Head of Contracting Authority (HCA). The HCA operates with the agency’s only unlimited 

warrant, providing authority to enter into and administer contracts for the AOC and further 

delegate contracting warrants to staff. The HCA maintains the responsibility for acquisition 

policy for the entire agency, which includes oversight of the annual self-inspection program, 

acquisition career management guidelines, updates to the contracting manual, implementation of

acquisition policies, standard operating procedures, other related acquisition policy initiatives 

and possesses the other authorities as outlined in this CM. 

Indefinite-Delivery Contract (IDC). A contract that establishes a pricing structure and overall 

framework of requirements at contract award and provides for placing orders for those 

requirements as the need arises throughout the period of contract performance. Examples of 

IDCs are General Services Administration (GSA) Federal Supply Schedule (FSS) contracts, 

governmentwide agency contracts and multi-agency contracts.

Independent Government Estimate (IGE). The estimated dollar amount, to include all periods of 

performance, of the AOC requirement developed by a government employee or authorized 

designee, which consists of all price elements, including overhead and profit.

Inherently Governmental Function. A function that is so intimately related to the AOC and 

public interest as to mandate performance by a government employee. An inherently 

governmental function includes activities that require either the exercise of discretion in applying 

government authority or the making of value judgments in making decisions for the government. 

Governmental functions normally fall into two categories: the act of governing, i.e., the 

discretionary exercise of government authority, and monetary transactions and entitlements.

Inspection. The examination and/or testing of supplies, services or construction to determine 

compliance with the contract.

Interagency Agreement (IAA). An agreement, generally between government agencies and 

departments that defines cooperative work between them. The agreement defines the parties 

involved, the work performed and the transfer of technologies and funds.

Interagency Funding Document. A written document transferring funds from the AOC to another 

government agency in accordance with provisions of an IAA or particular statute that authorizes 

the practice.

Invitation for Bid (IFB). The solicitation document sent to prospective bidders for procurements 

using sealed bidding. IFBs must describe the government’s requirements clearly, accurately and 

completely. Sealed bidding uses only price and price-related factors to determine the successful 

responsive and responsible offeror.

Labor-Hour (LH) Contract. A type of contract that provides for acquiring services on the basis 

of direct labor hours at specified fixed hourly rates that include wages, overhead, general and 

administrative expenses, and profit.
AOC Order 34-1 Contracting Manual, July 14, 2022 7

Matrix Checklist. A regularly updated list of provisions and clauses required to be inserted into 

solicitations/contracts. Contracting staff can find the AOC Matrix Checklist on the shared AOC 

IT network. Contracting staff shall use the Matrix Checklist in effect at the time of solicitation to 

insert the appropriate provisions and clauses into solicitations/contracts.

Method of Procurement. A broad term describing the way the government procures supplies,

services and construction. The AOC uses the following basic methods of procurement: request 

for quotations (RFQ), RFPs, IFBs, government purchase cards, orders under FSS, DOs against 

other government agency contracts, and task orders against AOC IDCs.

Modification. A formal written change issued by the CO to a purchase/delivery/task order or 

contract after award.

Off-Site Delivery. The official point of delivery of supplies and materials by contractors ordered 

under contract by the AOC. 

Offer. A response to a solicitation that, if accepted, would bind the offeror to perform the 

resultant contract. Responses to IFBs (sealed bidding) are offers called bids or sealed bids;

responses to RFPs (negotiation) are offers called proposals; however, responses to RFQs 

(generally small purchases) are considered information or quotations, not offers.

Options. Line item(s) in a contract, which, for a specified time, entitles the government to 

purchase additional supplies or services called for by the contract or extend the contract term.

Packing Slip. A document provided by the vendor that provides a description of the items 

included in a shipment and the quantities of each item shipped. A packing or receiving slip is not 

an invoice.

Personal Services Contract. A contract characterized by the employer-employee relationship it 

creates between the AOC and the contractor’s personnel.

Price Reasonableness. A determination by the CO that the offeror’s price is fair and reasonable. 

Although this determination generally addresses whether the price is too high, it may also 

identify a price that is too low, indicating a lack of understanding by the offeror of the agency's 

requirements that could result in serious contract performance issues.

Proposal. An offer submitted in response to an RFP. The proposal must address all requirements 

outlined in the RFP and respond to the technical evaluation and price factors.

Public Exigency. A need by a public entity that is so urgent due to its impact on the operation, 

financial, safety or security of the entity that immediate attention and action is necessary. The 

need must be compelling and of unusual urgency. A public exigency presents an exceptional and 

urgent necessity requiring the immediate delivery – so urgent due to its impact on the functions, 

safety or security that immediate attention and action is necessary – must be compelling and of 

unusual urgency, as when the government would suffer serious financial loss or other damage if 
AOC Order 34-1 Contracting Manual, July 14, 2022 8

the supplies or services were not furnished by a certain date and when they could not be procured 

by that date by means of full and open competition.

Purchase Card Transaction. A procurement method to be used to the maximum extent possible 

for small purchases (e.g., task/delivery/purchase orders) below the competition threshold. 

Purchase card transactions provide a streamlined method of acquiring agency needs and reduce 

administrative costs, avoid unnecessary burdens and promote efficiency. Purchase card 

transactions must be distributed equitably among qualified suppliers.

Purchase Order (PO). An order executed by a CO authorizing a vendor to deliver supplies or 

services at the agreed upon price based on the terms and conditions specified at the time 

quotations were solicited. POs are used when there is not an existing contract that can fulfill the 

AOC’s requirements for $250,000 or less. POs are not binding on the vendor until accepted in 

writing or performance begins.

Quantity Discount. A discount offered by a vendor based upon the quantity of a particular order. 

It may be based upon the total number of items ordered or the total value of the order.

Quote or Quotation. A vendor’s response to an RFQ. Vendor quotations are not binding upon 

either the AOC or the quoter.

Ratification. The process by which an unauthorized commitment is approved for conversion to 

an official and legal AOC contract or order.

Receiving. The action taken by AOC personnel to indicate that supplies or services have been 

physically delivered to the premises by the contractor. Receiving usually infers that the supplies

or services were received, inspected and accepted by the AOC.

Registered in the System for Award Management (SAM). Registered in SAM or SAM.gov 

means: (1) The contractor has entered all mandatory information, including the UEI and the EFT

indicator (if applicable), the Commercial and Government Entity (CAGE) code into SAM.gov; 

(2) The government has validated all mandatory data fields, to include validation of the Taxpayer 

Identification Number (TIN) with the Internal Revenue Service (IRS). The contractor will be 

required to provide consent for TIN validation to the government as a part of the SAM 

registration process; and (3) The government has marked the record active.

Request for Information (RFI). A business process primarily used to gather information to help 

make a decision, or is sent to a broad base of potential suppliers to help develop acquisition 

strategy, build a supplier database, and prepare for the issuance of an upcoming solicitation. In 

the construction industry, an RFI submitted by the contractor is sometimes necessary to confirm 

the interpretation of a detail, specification or note on the construction drawings, or to secure a 

documented directive or clarification from the A/E to continue work.

Request for Proposals (RFP). A solicitation document used in negotiated procurements to 

communicate the AOC’s requirements to prospective offerors and solicit proposals from them. 

Requisition. A request to purchase supplies or services through the agency contracting office or 
AOC Order 34-1 Contracting Manual, July 14, 2022 9

the government purchase card program. The purchase requisition must include all appropriate 

approvals, proper funding, a clear and definitive description of the requirements, a realistic 

delivery date, and any special instructions or attachments as required.

Request for Quotations (RFQ). A solicitation document used to communicate the AOC’s 

requirements to prospective vendors. Quotes submitted in response to an RFQ are not offers and, 

consequently, do not form a binding contract between the AOC and the vendors.

Requisition. A request to purchase supplies, services or construction through the agency 

contracting office or the government purchase card program within the limits of that program.

The purchase requisition must include all appropriate approvals, proper funding, a clear and 

definitive description of the requirements, a realistic delivery date, and any special instructions 

or attachments as required.

SAM Exclusions. An electronic, web-based system that identifies those parties excluded from 

receiving federal contracts, certain subcontracts, and certain types of federal financial and 

nonfinancial assistance and benefits. This system keeps its user community aware of 

administrative and statutory exclusions across the entire government and individuals barred from 

entering the United States. Exclusions can be found on www.sam.gov.

Scope of Work (SOW). The overall range or extent of the work or services to be provided under 

the contract. An SOW provides detailed information on what the AOC expects the contractor to 

deliver or accomplish. Sometimes SOW can also mean Statement of Work or Scope of Services.

Service Contract. A contract to provide a specified end result rather than a product, such as 

custodial services, maintenance or repair.

Service Contract Labor Standards. (Formerly the Service Contract Act [SCA]) Requires 

contractor personnel performing service contracts with a total value exceeding $2,500, be paid 

wages and benefits determined applicable for that geographic area by the Department of Labor

(DOL).

Shipping Charges. The cost of transporting an item from the contractor’s point of origin to the 

AOC-designated location.

Single Transaction Purchase Card Limit. A maximum amount for which a single procurement 

can be made with the purchase card. Each cardholder’s single transaction purchase card limit 

shall be set by the Purchase Card Program Manager.

Small Purchase Threshold. The amount at which a competitive requirement must be solicited

and awarded using simplified acquisition procedures. The Small Purchase Threshold for the 

AOC is $250,000.

Sole Source. A contract for the purchase of supplies or services that is entered into or proposed to 

be entered into by the AOC after soliciting and negotiating with only one source.
AOC Order 34-1 Contracting Manual, July 14, 2022 10

Solicitation. Any request to submit offers or quotations to the government. Solicitations under 

sealed bid procedures are called IFBs. Solicitations under negotiated procedures are called RFPs. 

Solicitations under simplified acquisition procedures are called RFQs.

Source Selection Information. Any of the following information that is prepared for use by the 

AOC for the purpose of evaluating a bid or proposal to enter into a procurement contract, if that 

information has not been previously made available to the public or disclosed publicly:

(1) Bid prices submitted in response to an IFBs or lists of those bid prices before bid opening

(2) Proposed costs or prices submitted in response to a solicitation, or lists of those proposed 

costs or prices

(3) Source selection plans

(4) Technical evaluation plans

(5) Technical evaluations of proposals

(6) Cost or price evaluations of proposals

(7) Competitive range determinations that identify proposals that have a reasonable chance of 

being selected for award

(8) Rankings of bids, proposals or competitors

(9) Reports and evaluations of source selection panels, boards or advisory councils

(10) Other information marked as “Source Selection Information” based on a case-by-case 

determination by the Architect of the Capitol or the CO that disclosure would jeopardize the 

integrity or completion of the procurement

Specification. A description of the technical requirements for a material, product or service that 

includes the criteria for determining whether the requirements are met. Specifications may 

include drawings.

Split Transaction. Split transactions are prohibited. A split transaction occurs when government 

purchase requirements are inadvertently or deliberately split into two or more smaller purchases

to keep the purchase beneath a purchase limitation or competition threshold. For example, in a 

purchase card transaction, a cardholder cannot split a single purchase into multiple purchases to 

avoid exceeding the single purchase limit, but instead must use other acquisition procedures set 

forth in this CM.

Statement of Accounts. Documents produced by the bank issuing the AOC purchase card and 

sent to the cardholder and the AOC OCFO that list all transactions processed in the previous 

billing cycle.

Supplemental Agreement. A contract modification that requires the signature and agreement of 

both an authorized contractor employee and an authorized AOC CO to establish a definite price

for additional services or supplies, or to make other changes in the contract.

Supplies. All property, equipment, tools, parts and accessories but not land or interest in land. 

System for Award Management (SAM or sam.gov). The primary government repository for 

prospective federal awardee and federal awardee information and the centralized government 

system for certain contracting, grants and other assistance-related processes. It includes data 
AOC Order 34-1 Contracting Manual, July 14, 2022 11

collected from prospective federal awardees required for the conduct of business with the 

government and identification of those parties excluded from receiving federal contracts, certain 

subcontracts, and certain types of federal financial and nonfinancial assistance and benefits.

Task Order (TO). A written order for services made within the terms and conditions of an 

existing contract.

Termination for Convenience. Exercising the government’s right to completely or partially 

terminate performance of work under a contract when it is in the government’s interest to do so.

Termination for Default. Exercising of government’s right to completely or partially terminate a 

contract because of the contractor’s failure to perform its contractual obligations.

Time-and-Materials (T&M) Contract. A type of contract that provides for acquiring supplies or 

services on the basis of direct labor hours at specified fixed hourly rates that include wages, 

overhead, general and administrative expenses, and profit and materials at cost. Each T&M 

contract must state a ceiling price that the contractor may not exceed.

Title. Legal ownership (title) that transfers to the AOC upon acceptance of contract performance 

regardless of when or where the AOC takes physical possession.

Trade-in Value. The amount at which an existing piece of AOC equipment is valued when the 

AOC is procuring a new piece of equipment. Trade-ins of old equipment are shown on the order 

for the new equipment and result in a decrease of the total cost of the new equipment.

Unique Entity Identifier (UEI). A number or other identifier used to identify a specific 

commercial, nonprofit, or Government entity. See www.sam.gov for the designated entity for 

establishing UEIs.

Unsolicited Proposal. A proposal submitted to the AOC, without any known requirement or 

request by the AOC, for the purpose of obtaining a contract or PO.

1.3. Procurement Authority and Responsibility

1.3.1. Procurement Authority

(a) The Chief DCA or Chief SSMMD, as applicable, has been delegated authority to enter into 

contracts on behalf of the AOC, with authority to appoint and terminate COs as necessary for 

contract award, execution and administration.

(b) COs are authorized to enter into and administer contracts within the limits prescribed in their 

CO delegation of authority (warrant).

1.3.2. Contracting Responsibilities

(a) The Chief DCA or Chief SSMMD, as applicable, shall be responsible for the following:

(1) Ensure that contracts, including IAAs, are made in accordance with all applicable laws, 

regulations and directives
AOC Order 34-1 Contracting Manual, July 14, 2022 12

 (2) Ensure that all purchases, including reimbursable inter-agency agreements, contain the 

respective justifications and receive Office of General Counsel (OGC) review as appropriate

 (3) Ensure that emergency purchases are held to an absolute minimum and shall not accept any 

emergency requests or requisitions unless such purchase request or requisition is justified by 

the originating jurisdiction

 (4) Ensure that purchase requests or requisitions are not accepted when there has been an 

attempt to circumvent this manual governing competitive negotiation and bidding

(b) COs execute and administer contracts for supplies, services and construction on behalf of the 

AOC. All COs shall sign contractual documents in their own name.

(c) All conditions shall be met before entering into contracts. No contract shall be entered into 

unless all applicable requirements of law, this manual and other agency acquisition procedures

are met.

1.3.3. Selection and Termination

(a) Selection. In selecting individuals to serve as COs or in positions that include authority to act 

as COs, consideration shall be given to experience, training, education, business acumen, 

judgment, character, reputation and ethics. Contracting personnel certification for Federal 

Acquisition Certification-Contracting, Levels I, II and III shall be consistent with Federal 

Acquisition Institute standards as to education level, experience and training. COs’ delegation of 

authority in the form of a CO warrant shall be commensurate with their level of certification.

(b) Termination. A CO appointment may be unilaterally terminated or suspended at any time by 

the Chief DCA or Chief SSMMD, as applicable, but no such termination or suspension shall 

operate retroactively. Unless sooner terminated or suspended, the appointment of a CO shall 

automatically cease: 

 (1) Upon the expiration date, if any, contained in their warrant

 (2) Upon reassignment to duties not requiring contracting authority

 (3) Upon termination of employment with the AOC

1.3.4. Determination and Findings

(a) A D&F constitutes a special form of approval or exercise of judgment required as a 

prerequisite to taking certain actions by procurement officials. A D&F must stand alone and 

should ideally be confined to a single page, containing all available findings, concisely stated, to 

support the determination. A D&F is to be used wherever the words determine or determination 

or any variations on these words appear to require documentation in support of any contractual 

action.

(b) Each D&F shall set forth enough facts and circumstances to clearly and convincingly justify 

the specific determination made. As a minimum, each D&F shall include, in the prescribed 

agency format, the following information:

(1) Specific identification of the document as a “Determination and Findings”

(2) Nature and/or description of the action being approved

(3) Citation of the appropriate CM section or authority upon which the D&F is based

(4) Findings that detail the particular circumstances, facts or reasoning essential to support the 
AOC Order 34-1 Contracting Manual, July 14, 2022 13

determination with necessary supporting documentation attached

(5) A determination, based on the findings, that the proposed action is justified

(6) Expiration date of the D&F if required

(7) The signature of the official authorized to sign and the date signed

(c) D&Fs are used for, but not limited to, the following types of contractual actions:

(1) Ratification.

(2) Quantum meruit claims (an action to recover the reasonable value of services rendered by 

one party to another).

(3) Non responsibility determination.

(4) Mistakes in bid.

(5) Negotiations with other contractors for a reprocurement, where the original contractor has 

been terminated for default.

(6) Authorizing awards notwithstanding U.S. Government Accountability Office (GAO) protest.

1.3.5. Ratification of Unauthorized Commitments

(a) An unauthorized commitment is an agreement that is not binding because the government 

representative who made it lacked the authority to enter into that agreement on behalf of the 

government.

(b) Positive action should be taken to preclude, to the maximum extent possible, the need for 

ratification actions. Although procedures are provided in this CM where the ratification of an 

unauthorized commitment is necessary, these procedures may not be used in a manner that 

encourages such commitments being made by AOC personnel.

(c) All ratifications of unauthorized commitments are subject to the Antideficiency Act and AOC 

policy.

(d) When an unauthorized commitment has occurred, the responsible individual will receive a 

memorandum from the Chief DCA or Chief SSMMD, as applicable. In this memorandum, the 

individual is instructed to answer relevant questions and provide a description of all facts 

concerning the unauthorized commitment, including all pertinent records and documents. The 

information requested shall include:

 (1) A description and the amount of the service/supply received

 (2) Justification for the service/supply

 (3) The benefit the government acquired from receiving the service/supply

 (4) The circumstances that led to the unauthorized commitment, including why a procurement 

request was not prepared and why the CO was not allowed an opportunity to place an order 

for the service/supply

 (5) The name of the vendor that provided the item, the vendor’s invoice, how the vendor was 

selected to provide the item, how the vendor’s price was determined fair and reasonable, and 

other vendors and prices considered

 (6) Date the service/supply was requested and received by the government official

 (7) If the unauthorized commitment was executed using prior fiscal year funds, documentation 

from the AOC Budget Division that funds are available for the appropriate fiscal year, or if 

current year funds are proposed for use, a requisition in the appropriate amount utilizing the 
AOC Order 34-1 Contracting Manual, July 14, 2022 14

proper funds

 (8) What actions will be taken to prevent future unauthorized commitments

 (9) Why the unauthorized commitment should be ratified rather than requiring the individual 

who made the unauthorized commitment to settle the action directly with the vendor

(e) The responsible individual for the unauthorized commitment shall sign their name with title 

on the memorandum. If the individual is no longer an AOC employee, then the individual’s 

Superintendent or Director shall sign the memorandum.

(f) The responsible individual shall forward the completed memorandum through their respective 

Superintendent/Director to the Chief DCA or Chief SSMMD, as applicable. Upon receipt of the 

memorandum and documentation for an unauthorized commitment, and if it is deemed to be 

sufficient, the Chief DCA or Chief SSMMD, as applicable, shall prepare the following 

determinations and recommendation:

 (1) The government needed and obtained a benefit from the service/supplies received

 (2) The price for the service/supplies has been determined to be fair and reasonable

 (3) Funds are available and were available at the time the unauthorized commitment was made

 (4) The ratification request is in accordance with established agency procedures

 (5) Based on the information received, a resulting order/contract would otherwise be proper if 

executed by a CO and there appears to be no conflict of interest

 (6) The vendor is not debarred or ineligible for award

 (7) The CO has explained to the individual who made the unauthorized commitment that:

(i) Only government personnel with contracting authority may obligate government funds

(ii) The action is not a binding government agreement and does not require the government

to pay the vendor for the item

(iii)The person who made the unauthorized commitment may be held liable to the vendor for 

payment or return of the item

(iv)Payment for the service/supply is recommended or not recommended

(g) The Chief DCA or Chief SSMMD, as applicable, shall forward the memorandum, 

determination and recommendation, and any other supporting documentation to the Review and 

Approval Board (consisting of the Chief of Staff [COS], Chief Administrative Officer [CAO], 

Chief Financial Officer [CFO] and General Counsel). The board, after review of the 

unauthorized procurement, will either recommend for or against the request for ratification based 

upon the sufficiency of the memorandum. If not all board members approve ratification, the 

Architect of the Capitol has the authority to make the final approval.

(h) The board shall notify the Chief DCA or Chief SSMMD, as applicable, of its decision.

 (1) If the ratification request is approved by the board, the applicable Chief shall notify the 

Superintendent/Director of the board’s approval. The Superintendent/Director shall prepare 

the appropriate documentation (sole source justification, etc.) and submit it to the CO for 

procurement action in accordance with applicable regulations and AOC policy.

 (2) If the ratification request is not approved by the board, the jurisdiction/organization will 

receive a copy of the board’s disapproval. Disapprovals may require disciplinary action 

against the employee and/or notification to the vendor that the AOC is not responsible for 

the procurement of this item. The employee may be held liable for the expenditure.
AOC Order 34-1 Contracting Manual, July 14, 2022 15

1.4. General Policies

1.4.1. Ethical Considerations

Persons who represent the AOC in business dealings with commercial contractors must observe 

the highest ethical standards. Individuals should not allow themselves to be placed in a position 

in which an actual or apparent conflict of interest might arise. Not only must their official 

conduct comply with federal laws and AOC regulations, it must be such as to avoid any 

appearance of unethical conduct. Accordingly, jurisdictions must ensure that all personnel 

involved in procurement activities become familiar with AOC Order 38-1, Government Ethics, 

and complete annual ethics training.

1.4.2. Suspected Antitrust Violations

(a) General. Practices designed to eliminate competition or restrain trade, and that may evidence 

possible violations of the antitrust laws, include: collusive bidding, follow-the-leader pricing, 

rotated low bids, uniform estimating systems, sharing of business, identical bids and similar 

practices.

(b) Reporting Suspected Violations. Any offer or bid received which evidences a violation of the 

antitrust laws must be referred to the Chief DCA or Chief SSMMD, as applicable, who will 

review the file and determine whether further action is needed. If further investigation is 

warranted the matter shall be referred the OGC and the Office of Inspector General (OIG) as 

appropriate. Any suspected violation shall be promptly reported, setting forth complete details 

regarding the circumstances.

(c) Noncollusive Bids (48 CFR § 52.203-2). By submission of a bid, the bidder in the 

Certification of Independent Price Determination on the reverse of the bid form certifies that 

among other things:

 (1) The prices have been arrived at independently without reference to or agreement with other 

bidders or with any competitor for the purpose of restricting competition.

 (2) The prices bid have not been, and will not be, knowingly disclosed, and no attempts have 

been made to induce any other firm to submit or not to submit a bid.

 (3) The signer of the bid is the one responsible for the decision as to the prices bid, and has not 

and will not participate in any conduct contrary to (1) or (2) above.

 (4) Normally, a bid cannot be considered for award if any deletions or modifications to the 

certificate have been made. If a bidder takes exception to the disclosure provision, the CO

will make the determination required by paragraph (d) of the certificate. If the certificate is 

suspected of being false, or there is evidence of collusion, the matter will be reported in 

accordance with this section.

1.4.3. Documenting Procurement Actions

(a) Official records (i.e., contract files) shall be established and maintained for all procurement 

actions (including canceled solicitations) by COs in DCA and SSMMD as applicable. The 

contract file shall contain documentation, both formal and informal, of all actions taken with 

respect to the transaction, including final disposition. Such information may be necessary to 

provide essential facts for litigation or congressional inquiries, to furnish information for 
AOC Order 34-1 Contracting Manual, July 14, 2022 16

investigations, or to satisfy other similar requirements.

(b) The following records are normally kept in contract files. The list is not all-inclusive and not 

all items listed will be applicable to every file.

(1) The requisition, acquisition planning information, market research and other presolicitation documents

(2) Evidence of availability of funds, including any increases or decreases

(3) Synopsis of the acquisition as published

(4) A list of sources solicited, including firms that requested a copy of the solicitation and 

were furnished or denied - documentation on any denial shall be in the files

(5) IGE of the requirement

(6) Record of any exchanges before award

(7) A copy of the solicitation, including attachments and any amendments

(8) A copy of each offer or quotation received

(9) The abstract of offers/quotes and record of negotiations

(10) Pre-award survey reports

(11) An evaluation plan

(12) A CO’s determination of contractor responsibility

(13) Packaging and transportation data

(14) Evidence of legal review(s)

(15) A notice of award

(16) The original of the signed contract and all contract modifications

(17) Copies of letters to unsuccessful offerors and records of any debriefings with them

(18) Bonds and notices to sureties

(19) Proof of required insurance, licenses and permits

(20) Notices to proceed or suspension of work letters

(21) Royalty clearances, copyright reports, etc.

(22) Contract completion documents, such as payments, receiving reports

(23) Documentation concerning termination actions

(24) Letters of appointment of CORs and ordering officers, COR reports

(25) Copies of any reports required as a result of the dollar value of the contract

(26) Any additional documents on which action was taken by the CO

(27) Copies of protests, appeals and documentation supporting the decision

(28) Copies of all correspondence between and among all interested parties

(29) Copies of all disputes, claims, audits and supporting documents for any CO’s final 

decision

1.4.4. Taxes

(a) Items purchased directly by the AOC are for exclusive use of the U.S. government and are 

generally exempt from state and local taxes. From time to time, a state or local government entity 

may request or require payment of taxes. Should this happen, the matter must be referred to the 

OGC for review and advice.

(b) AOC contractors are responsible for paying state and local sales tax in relation to full 

performance under contracts awarded by the AOC. For an AOC contractor to claim exemption 

from state or local sales tax, the contractor must be an agent of the government or be an 
AOC Order 34-1 Contracting Manual, July 14, 2022 17

instrumentality so closely connected to the government that the two cannot realistically be 

viewed as separate entities. An AOC contractor will generally be unable to meet this test except 

in very limited circumstances. The U.S. Supreme Court held that the federal government’s 

immunity from state and local tax does not pass to a federal contractor simply because it 

provides services to the government.

(c) Language in all AOC contracts states that the contract price includes all applicable federal, 

state, and local taxes and duties. Unless specified in the contract, the AOC cannot be required to 

pay any additional amount above the contract price for taxes.

1.4.5. Requests for Information

The AOC, as a legislative branch agency, is not subject to the Freedom of Information Act 

(FOIA). FOIA requests must be referred to OGC for response. However, communication with 

industry and debriefing of unsuccessful offerors are part of the normal procurement process. 

Requests for information from members of the media or the general public must be referred to 

Legislative and Public Affairs.

1.4.6. DPAS

DPAS provides for the prompt procurement and delivery of articles and materials in support of 

national defense and in the event of an emergency. The Federal Emergency Management Agency 

issued a program determination on November 12, 2012, allowing the use of DPAS for specific 

AOC activities. More information about the DPAS Program shall be obtained by contacting the 

AOC DPAS Program Manager in the AOC Office of Safety and Code Compliance.

1.4.7. Variation in Quantity

The AOC shall not accept any variations in the quantity of any item called for in a contract 

unless the variation is authorized in the solicitation and Variation in Quantity clause or language 

is included in the contract. The CO shall insert the appropriate clause shown in the version of the 

Matrix Checklist in effect at the time of solicitation if authorizing a variation in quantity in fixedprice contracts for supplies or for services that involve the furnishing of supplies. The variation 

percentage or amount is determined by the CO.

1.4.8. Contractor Team Arrangements

(a) Definition. Contractor team arrangement means an arrangement in which:

(1) Two or more companies form a partnership or joint venture to act as a potential prime 

contractor.

(2) A potential prime contractor agrees with one or more other companies to have them act as 

its subcontractors under a specified government contract or acquisition program within the 

scope of the contract.

(b) General. Contractor team arrangements may be desirable from both a government and 

industry standpoint to enable the companies involved to complement each other’s unique 

capabilities and offer the government the best combination of performance, cost and delivery for 

the system or product being acquired. The companies involved normally form a contractor team 

arrangement before submitting an offer or bid. However, they may enter into an arrangement 

later in the acquisition process, but only on competitively negotiated procurements.
AOC Order 34-1 Contracting Manual, July 14, 2022 18

(c) Policy. The government will recognize the integrity and validity of contractor team 

arrangements for contracts valued in excess of the Small Purchase Threshold; provided, the 

arrangements are identified and company relationships are fully disclosed in an offer or bid or, 

for arrangements entered into after submission of an offer, before the contract becomes effective. 

The government will not normally require or encourage the dissolution of contractor team 

arrangements.

(d) Joint Venture Agreement. Agreements shall be signed by all parties to the joint venture and 

contain the following before acceptance by the government:

(1) The written agreement between the parties shall reserve to the government the right to 

enforce the terms of the contract both jointly and severably against the parties.

(2) The agreement must contain a statement from the attorney for each party that the joint 

venture is within the corporate power of each party.

(3) One party to the joint venture must have total control of all phases of contract 

performance. Control must include delegated authority to fix the responsibilities of the 

other party.

(4) One party to the joint venture must perform the contract primary production function. All 

other parties must perform at least one of the remaining production functions as described 

in the solicitation.

(5) The agreement should identify each party’s contribution toward contract completion such 

as materials, manpower and experience.

(6) Invoices for all phases of contract performance must be submitted by one party to the 

joint venture. All payments will be made in the name of the joint venture.

(7) The joint venture agreement must be limited solely to the objective of the contract.

(8) A copy of the executed agreement must be submitted with the proposal or bid.

(e) Limitations. Nothing in this subsection authorizes contractor team arrangements in violation 

of antitrust statutes or limits the government’s rights to:

(1) Require consent to subcontracts

(2) Determine, on the basis of the stated contractor team arrangement, the responsibility of 

the prime contractor

(3) Provide to the prime contractor data rights owned or controlled by the government

(4) Pursue its policies on competitive contracting, subcontracting and component breakout 

after initial production or at any other time

(5) Hold the prime contractor fully or solely responsible for contract performance, regardless 

of any team arrangement between the prime contractor and its subcontractors

(f) Sufficiency Review of Joint Venture Agreements. The CO must ensure that the 

documentation for a joint venture agreement is sufficient for government acceptance, that there is 

no contradiction or ambiguity with antitrust statutes, and that there are no limitations on the 

government’s rights. Therefore, before taking any action regarding a joint venture agreement, the 

CO must forward a copy of the solicitation, a copy of the planned award document, and the 

original submitted joint venture documentation to OGC for a legal sufficiency determination.

(g) Insert the appropriate clause shown in the version of the Matrix Checklist in effect at the time 

of solicitation.
AOC Order 34-1 Contracting Manual, July 14, 2022 19

1.5. Contractor Responsibility

1.5.1. General

Purchases shall be made from, and contracts shall be awarded to, responsible prospective 

contractors only. The award of a contract solely on the basis of the lowest responsive bid is not 

to the advantage of the government if additional procurement or administrative costs could 

subsequently result.

1.5.2. Responsible Contractor

A responsible contractor is one who meets the minimum standards set forth in this CM to the 

extent that such standards are applicable to the specific procurement.

1.5.3. Authority

The authority for determinations of contractor responsibility rests with the CO. Where a small 

business is concerned, and captured under a memorandum of understanding (MOU) with the 

Small Business Administration (SBA), the final authority for determinations of non-responsible 

small businesses rests with the SBA. This MOU is maintained and updated as necessary by the 

AOC purchase card Agency Program Manager (APM) in SSMMD. The CO shall consult the

SBA for small business nonresponsibility determinations and must also seek OGC review and 

involvement before issuing any nonresponsibility determinations.

1.5.4. Minimum Standards for Responsible Prospective Contractors

To receive a favorable responsibility rating, a prospective contractor must meet the standards set 

forth below to the extent applicable to the specific procurement. The prospective contractor shall:

(a) Have adequate financial resources, or the ability to obtain adequate financial resources to 

perform the contract

(b) Be able to comply with the proposed delivery schedules, taking into consideration other 

existing commitments, commercial and governmental

(c) Have a satisfactory performance record regarding both quality and timeliness on previously 

awarded contracts

(d) Have obtained satisfactory evaluations in Federal Awardee Performance and Integrity 

Information System (FAPIIS), (available at https://www.cpars.gov), including information from 

the System for Award Management (SAM) Exclusions and the Contractor Performance 

Assessment Reporting System (CPARS)

(1) The CO shall document the contract file to indicate how this information was considered 

in any responsibility determination.

(e) Possess or have the ability to acquire, the necessary equipment, technical skills and 

productive capacity to perform the contract requirement

(f) Have adequate production controls and quality assurance methods to satisfy the quality 

requirements of the contract
AOC Order 34-1 Contracting Manual, July 14, 2022 20

(g) Be able to satisfy any specified special standards of responsibility that are incorporated in

special standards or specifications where the requirements call for unusual expertise, specialized 

facilities or location of facilities

(h) Be otherwise qualified and eligible to receive an award under applicable laws and regulations

(i) Properly register and enter all mandatory information into the SAM database (sam.gov); the 

contractor cannot be listed on SAM Exclusions as an excluded vendor

1.5.5. System for Award Management

(a) Prospective contractors shall be registered in the SAM database prior to award, except for:

(1) Purchases under a government purchase card

(2) Contracts awarded in the conduct of emergency operations, such as responses to natural 

or environmental disasters or national or civil emergencies

(3) Contracts to support unusual or compelling needs

(4) Properly documented and executed IAAs contained in a contract file

(5) Properly documented and executed MOU contained in a contract file

(b) If a contractor has legally changed its business name, doing business as name, or division 

name (whichever is shown on the contract) or has transferred the assets used in performing the 

contract, but has not completed the necessary requirements regarding novation and change-ofname agreements, the contractor shall provide the CO a minimum of one business day’s written 

notification of its intention to change the name in the SAM database and agree in writing to the 

timeline and procedures specified by the CO. The contractor must provide with the notification 

sufficient documentation to support the legally changed name.

(1) If the contractor fails to comply and in the absence of a properly executed novation or 

change-of-name agreement, the SAM information that shows the contractor to be other 

than the contractor indicated in the contract will be considered to be incorrect 

information. Any invoice submitted in accordance with the payment clauses of this 

contract that contains incorrect information will not be processed

(2) The contractor shall not change the name or address for EFT or manual payments, as 

appropriate, in the SAM record to reflect an assignee for the purpose of assignment of 

claims

(3) Assignees shall be separately registered in the SAM database. Information provided to the 

contractor’s SAM record that indicates payments, including those made by EFT, to an 

ultimate recipient other than that contractor will be considered to be incorrect 

information. Any invoice submitted in accordance with the payment clauses of this 

contract that contains incorrect information will not be processed

(c) Unless the acquisition is exempt, the CO shall:

(1) Verify that the prospective contractor is registered in the SAM database before award;

COs are encouraged to check SAM early in the acquisition process, after the competitive 

range has been established, and then communicate to the unregistered offerors that they 

must register

(2) Use the UEI to verify registration
AOC Order 34-1 Contracting Manual, July 14, 2022 21

(d) If the CO, when awarding a contract or agreement, determines that a prospective contractor is 

not registered in the SAM database, the CO shall either:

(1) If the needs of the agency allow for a delay; make award after the apparently successful 

offeror has registered in the SAM database. The CO shall advise the offeror of the 

number of days it will be allowed to become registered. If the offeror does not become 

registered by the required date, the CO shall award to the next otherwise successful 

registered offeror following the same procedures (i.e., if the next apparently successful 

offeror is not registered, the CO shall advise the offeror of the number of days it will be 

allowed to become registered, etc.); or

(2) If the needs of the agency do not allow for a delay; proceed to award to the next 

otherwise successful registered offeror, provided that written approval is obtained at one 

level above the CO; or

(3) If the contract action is being awarded pursuant to an unusual and compelling urgency, 

the contractor must be registered in the SAM within 30 days after award, or at least three 

days prior to submitting the first invoice, whichever occurs first.

1.5.6. Debarment, Suspension and Ineligibility

(a) Definitions. As used in this section:

(1) “Affiliates” means business concerns, organizations or individuals are affiliates of each 

other if, directly or indirectly:

(i) Either one controls or has the power to control the other, or

(ii) A third party controls or has the power to control both. Indicia of control include, but are 

not limited to, interlocking management or ownership, identity of interests among family 

members, shared facilities and equipment, common use of employees, or a business entity 

organized following the debarment, suspension, or proposed debarment of a contractor 

which has the same or similar management, ownership, or principal employees as the 

contractor that was debarred, suspended, or proposed for debarment.

(2) “Civil judgment” means a judgment or finding of a civil offense by any court of competent 

jurisdiction.

(3) “Contractor” means any individual or other legal entity that:

(i) Directly or indirectly (e.g., through an affiliate), submits offers for or is awarded, or 

reasonably may be expected to submit offers for or be awarded, a government contract, 

including a subcontract under a government contract; or

(ii) Conducts business, or reasonably may be expected to conduct business, with the 

government as an agent or representative of another contractor.

(4) “Debarment” means action taken to exclude a contractor from government contracting and 

government approved subcontracting for a reasonable, specified period; a contractor that is 

excluded is debarred.

(5) “Ineligible for award” means contractors listed in SAM Exclusions that are excluded from 

receiving contracts and subcontracts under the conditions and for the period set forth.

Generally, the AOC shall not solicit offers from, award contracts to, or consent to 

subcontracts with these contractors.

(6) “Indictment” means indictment for a criminal offense. An information or other filing by 

competent authority charging a criminal offense is given the same effect as an indictment.

(7) “Legal proceedings” means any civil judicial proceeding to which the government is a 

party or any criminal proceeding. The term includes appeals from such proceedings.
AOC Order 34-1 Contracting Manual, July 14, 2022 22

(8) “Suspension” means action taken to disqualify a contractor temporarily from government 

contracting and government-approved subcontracting; a contractor that is disqualified is 

“suspended.”

(9) “Unfair trade practices” means the commission of any or the following acts by a contractor: 

A knowingly false statement regarding a material element of a certification concerning the 

foreign content of an item of supply or construction materials, as determined by the head of 

the agency to which such certificate was furnished.

(b) Policy. The AOC will not solicit offers from, award contracts to, or consent to subcontracts 

with, contractors who are listed on the SAM Exclusions maintained by the GSA.

(1) If the AOC suspends or proposes debarment for a contractor, the AOC will list that 

contractor in SAM Exclusions as described below.

(2) The serious nature of debarment and suspension requires that these sanctions be imposed 

only in the public interest for the government’s protection and not for purposes of 

punishment. The AOC shall impose debarment or suspension to protect the government’s 

interest and only for the causes, and in accordance with, the procedures set forth below.

(3) When more than one agency has an interest in the debarment or suspension of a contractor, 

the AOC shall coordinate resolution among all interested agencies prior to the initiation of 

any suspension, debarment, or related administrative action.

(4) The AOC may continue to place orders against existing contracts, including indefinitedelivery contracts, if the contract is not terminated. The AOC shall not extend or exercise 

options to renew contracts or consent to subcontracts with contractors debarred, suspended 

or proposed for debarment unless the suspension/debarment official states in writing a 

compelling reason for the extension or renewal.

(c) Suspension/Debarment Official. The AOC General Counsel will serve as the 

suspension/debarment official.

(1) The AOC General Counsel, in their discretion, may designate another attorney, including 

without limitation an attorney in another legislative branch agency to serve as a 

suspension/debarment official pursuant to an IAA with the AOC for any particular 

suspension/debarment action.

(2) The AOC General Counsel, in consultation with the Chief DCA or Chief SSMMD, as 

applicable, will also be responsible for deciding whether to terminate a current contract or 

subcontract if the contractor or subcontractor is later suspended, debarred or proposed for 

debarment.

(3) The AOC General Counsel, in consultation with the Chief DCA or Chief SSMMD, as 

applicable, will also be responsible for deciding whether to solicit offers from, award 

contracts to, or consent to subcontracts with a contractor who is suspended, debarred or 

proposed for debarment.

(d) Office of Primary Responsibility. DCA or SSMMD, as appropriate, is the office with primary 

responsibility for investigating and referring potential suspension and debarment actions to the 

suspension/debarment official. Individuals, employees and members of the public who believe 

that there may be grounds to suspend or debar a contractor may contact DCA or SSMMD as 

appropriate and provide them with all relevant information. Whenever DCA or SSMMD learns 

of information that indicates there may be grounds for suspending or debarring a contractor, that 
AOC Order 34-1 Contracting Manual, July 14, 2022 23

office will promptly gather appropriate information and refer the matter and a proposed course of 

action to the suspension/debarment official. The suspension/debarment official has final 

authority to determine whether to continue current contracts with, solicit offers from, award 

contracts to or consent to subcontracts with a contractor who is suspended, debarred or proposed 

for debarment.

(e) System for Award Management Exclusions (SAM Exclusions)

(1) GSA operates the web-based SAM, where the SAM Exclusions list is found, and provides 

technical assistance in the use of SAM. SAM Exclusions contains:

(i) Names and addresses of all contractors debarred, suspended, proposed for debarment or 

declared ineligible with cross-references when more than one name is involved in a single 

action

(ii) Name of the agency or other authority taking the action

(iii) Cause for the action or other statutory or regulatory authority

(iv) Effect of the action

(v) Termination date for each listing

(vi) UEI created in SAM.gov

(vii) Social Security Number (SSN), Employer Identification Number (EIN), or other TIN, if 

available

(viii) Name and telephone number of the agency point of contact for the action

(2) Contracting staff shall:

(i) Obtain password(s) from GSA to access SAM for data entry

(ii) Enter the information required above within 3 working days after the 

suspension/debarment action becomes effective

(iii) Update SAM Exclusions, generally within 5 working days after modifying or rescinding 

an action

(iv) In accordance with internal retention procedures, maintain records relating to each 

debarment, suspension or proposed debarment taken by the agency

(v) Ensure that the AOC does not solicit offers from, award contracts to or consent to 

subcontracts with contractors whose names are in SAM Exclusions, except as otherwise 

provided

(vi) Direct inquiries concerning listed contractors to the agency or other authority that took 

the action

(vii) Contact GSA for technical assistance with SAM, via the support email address or on the 

technical support phone line available at the SAM website

(f) Effect of Listing. Contractors debarred, suspended or proposed for debarment are excluded 

from receiving contracts, and the AOC shall not solicit offers from, award contracts to, or 

consent to subcontracts with these contractors, unless the suspension/debarment official 

determines that there is a compelling reason for such action. Contractors debarred, suspended or 

proposed for debarment are also excluded from conducting business with the government as 

agents or representatives of other contractors.

(1) Contractors included in SAM Exclusions are excluded from receiving contracts and 

subcontracts under the conditions and for the period set forth. The AOC shall not solicit 

offers from, award contracts to or consent to subcontracts with these contractors under 

those conditions and for that period. 
AOC Order 34-1 Contracting Manual, July 14, 2022 24

(2) Contractors debarred, suspended or proposed for debarment are excluded from acting as 

individual sureties.

(3) After the opening of bids or receipt of proposals, the CO shall review SAM Exclusions. 

(i) Bids received from any listed contractor in response to an IFB shall be entered on the 

abstract of bids, and rejected unless the suspension/debarment official determines in 

writing that there is a compelling reason to consider the bid.

(ii) Proposals, quotations or offers received from any listed contractor shall not be evaluated 

for award or included in the competitive range, nor shall discussions be conducted with a 

listed offeror during a period of ineligibility, unless the suspension/debarment official 

determines, in writing, that there is a compelling reason to do so. If the period of 

ineligibility expires or is terminated prior to award, the CO may, but is not required to, 

consider such proposals, quotations or offers.

(4) Immediately prior to award, the CO shall again review SAM Exclusions to ensure that no 

award is made to a listed contractor.

(g) Continuation of Current Contracts.

(1) Notwithstanding the debarment, suspension or proposed debarment of a contractor, the 

AOC may continue contracts or subcontracts in existence at the time the contractor was 

later debarred, suspended or proposed for debarment unless the suspension/debarment 

official directs otherwise. 

(2) For contractors debarred, suspended or proposed for debarment, unless the 

suspension/debarment official makes a written determination of the compelling reasons for 

doing so, the AOC shall not:

(i) Place orders exceeding the guaranteed minimum under indefinite-quantity contracts

(ii) Place orders under FSS contracts, blanket purchase agreements (BPA) or basic ordering 

agreements

(iii) Add new work, exercise options or otherwise extend the duration of current contracts or 

orders

(h) Restrictions on Subcontracting.

(1) When a contractor debarred, suspended or proposed for debarment is proposed as a 

subcontractor for any subcontract, COs shall not consent to subcontracts with such 

contractors unless the suspension/debarment official states in writing the compelling 

reasons for this approval action.

(2) The government suspends or debars contractors to protect the government’s interests. By 

operation of the applicable clause, contractors shall not enter into any subcontract in excess 

of $35,000, other than a subcontract for a commercially available off-the-shelf item, with a 

contractor that has been debarred, suspended or proposed for debarment unless there is a 

compelling reason to do so. If a contractor intends to enter into a subcontract in excess of 

$35,000, other than a subcontract for a commercially available off-the-shelf item, with a 

party that is debarred, suspended or proposed for debarment, a corporate officer or designee 

of the contractor is required to notify the CO, in writing, before entering into such 

subcontract. For contracts for the acquisition of commercial products / services, the 

notification requirement applies only for first-tier subcontracts. For all other contracts, the 

notification requirement applies to subcontracts at any tier. The notice must provide the 

following:
AOC Order 34-1 Contracting Manual, July 14, 2022 25

(i) The name of the subcontractor

(ii) The contractor’s knowledge of the reasons for the subcontractor being listed in SAM 

Exclusions

(iii) The compelling reason(s) for doing business with the subcontractor notwithstanding its 

listed in SAM Exclusions

(iv) The systems and procedures the contractor has established to ensure that it is fully 

protecting the government’s interests when dealing with such subcontractor in view of 

the specific basis for the party’s debarment, suspension or proposed debarment

(i) Debarment.

(1) It is the debarring official’s responsibility to determine whether debarment is in the 

government’s interest. The debarring official may, in the public interest, debar a contractor 

for any of the causes set forth, using the procedures herein. The existence of a cause for 

debarment, however, does not necessarily require that the contractor be debarred; the 

seriousness of the contractor’s acts or omissions and any remedial measures or mitigating 

factors should be considered in making any debarment decision. Accordingly, if a cause for 

debarment exists, the contractor has the burden of demonstrating, to the satisfaction of the 

debarring official, its present responsibility and that debarment is not necessary. Before 

arriving at any debarment decision, the debarring official should consider factors such as 

the following:

(i) Whether the contractor had effective standards of conduct and internal control systems in 

place at the time of the activity which constitutes cause for debarment or had adopted 

such procedures prior to any government investigation of the activity cited as a cause for 

debarment

(ii) Whether the contractor brought the activity cited as a cause for debarment to the attention 

of the AOC in a timely manner

(iii) Whether the contractor has fully investigated the circumstances surrounding the cause 

for debarment and, if so, made the result of the investigation available to the debarring 

official

(iv) Whether the contractor cooperated fully with government agencies during the 

investigation and any court or administrative action

(v) Whether the contractor has paid or has agreed to pay all criminal, civil and administrative 

liability for the improper activity, including any investigative or administrative costs 

incurred by the government, and has made or agreed to make full restitution

(vi) Whether the contractor has taken appropriate disciplinary action against the individuals 

responsible for the activity which constitutes cause for debarment

(vii) Whether the contractor has implemented or agreed to implement remedial measures, 

including any identified by the government

(viii) Whether the contractor has instituted or agreed to institute new or revised review and 

control procedures and ethics training programs

(ix) Whether the contractor has had adequate time to eliminate the circumstances within the 

contractor’s organization that led to the cause for debarment

(x) Whether the contractor’s management recognizes and understands the seriousness of the 

misconduct giving rise to the cause for debarment and has implemented programs to 

prevent recurrence. The existence or nonexistence of any mitigating factors or remedial 

measures is not necessarily determinative of a contractor’s present responsibility. 
AOC Order 34-1 Contracting Manual, July 14, 2022 26

Accordingly, if a cause for debarment exists, the contractor has the burden of 

demonstrating, to the satisfaction of the debarring official, its present responsibility and 

that debarment is not necessary.

(2) Debarment constitutes debarment of all divisions or other organizational elements of the 

contractor, unless the debarment decision is limited by its terms to specific divisions, 

organizational elements or commodities. The debarring official may extend the debarment 

decision to include any affiliates of the contractor if they are:

(i) Specifically named; and

(ii) Given written notice of the proposed debarment and an opportunity to respond.

(j) Causes for Debarment. The debarring official may debar:

(1) A contractor for a conviction of or civil judgment for:

(i) Commission of fraud or a criminal offense in connection with obtaining, attempting to 

obtain or performing a public contract or subcontract

(ii) Violation of federal or state antitrust statutes relating to the submission of offers

(iii) Commission of embezzlement, theft, forgery, bribery, falsification or destruction of 

records, making false statements, tax evasion, violating federal criminal tax laws or 

receiving stolen property

(iv) Intentionally affixing a label bearing a “Made in America” inscription (or any inscription 

having the same meaning) to a product sold in or shipped to the United States or its 

outlying areas, when the product was not made in the United States or its outlying areas

(v) Commission of any other offense indicating a lack of business integrity or business 

honesty that seriously and directly affects the present responsibility of a government 

contractor or subcontractor.

(2) A contractor, based upon a preponderance of the evidence, for any of the following:

(i) Violation of the terms of a government contract or subcontract so serious as to justify

debarment, such as: willful failure to perform in accordance with the terms of one or 

more contracts; or a history of failure to perform, or of unsatisfactory performance of, 

one or more contracts

(ii) Violations of 41 U.S.C. Chapter 81, Drug-Free Workplace, as indicated by such a number 

of contractor employees convicted of violations of criminal drug statutes occurring in the 

workplace as to indicate that the contractor has failed to make a good faith effort to 

provide a drug-free workplace or failure to comply with the requirements of the clause at 

52.223-6, Drug-Free Workplace

(iii) Intentionally affixing a label bearing a “Made in America” inscription (or any inscription 

having the same meaning) to a product sold in or shipped to the United States or its 

outlying areas, when the product was not made in the United States or its outlying areas

(iii) Commission of an unfair trade practice as defined in FAR § 9.403

(iv) Delinquent federal taxes in an amount that exceeds $10,000

(A) Federal taxes are considered delinquent if both of the following criteria apply:

(1) The tax liability is finally determined. The liability is finally determined if it has 

been assessed. A liability is not finally determined if there is a pending 

administrative or judicial challenge. In the case of a judicial challenge to the 

liability, the liability is not finally determined until all judicial appeal rights have 

been exhausted.

(2) The taxpayer is delinquent in making payment. A taxpayer is delinquent if the 
AOC Order 34-1 Contracting Manual, July 14, 2022 27

taxpayer has failed to pay the tax liability when full payment was due and 

required. A taxpayer is not delinquent in cases where enforced collection action is 

precluded.

(B) Examples.

(1) The taxpayer has received a statutory notice of deficiency, under I.R.C. §6212, 

which entitles the taxpayer to seek tax court review of a proposed tax deficiency. 

This is not a delinquent tax because it is not a final tax liability. Should the 

taxpayer seek tax court review, this will not be a final tax liability until the 

taxpayer has exercised all judicial appeal rights.

(2) The IRS has filed a notice of federal tax lien with respect to an assessed tax 

liability, and the taxpayer has been issued a notice under I.R.C. §6320 entitling 

the taxpayer to request a hearing with the IRS Office of Appeals contesting the 

lien filing, and to further appeal to the tax court if the IRS determines to sustain 

the lien filing. In the course of the hearing, the taxpayer is entitled to contest the 

underlying tax liability because the taxpayer has had no prior opportunity to 

contest the liability. This is not a delinquent tax because it is not a final tax 

liability. Should the taxpayer seek tax court review, this will not be a final tax 

liability until the taxpayer has exercised all judicial appeal rights.

(3) The taxpayer has entered into an installment agreement pursuant to I.R.C. §6159. 

The taxpayer is making timely payments and is in full compliance with the 

agreement terms. The taxpayer is not delinquent because the taxpayer is not 

currently required to make full payment.

(4) The taxpayer has filed for bankruptcy protection. The taxpayer is not delinquent 

because enforced collection action is stayed under 11 U.S.C. 362 (the Bankruptcy 

Code).

(v) Knowing failure by a principal, until 3 years after final payment on any government 

contract awarded to the contractor, to timely disclose to the government, in connection 

with the award, performance or closeout of the contract or a subcontract thereunder, 

credible evidence of:

(1) Violation of federal criminal law involving fraud, conflict of interest, bribery or 

gratuity violations found in Title 18 of the United States Code;

(2) Violation of the civil False Claims Act (31 U.S.C. 3729-3733); or

(3) Significant overpayment(s) on the contract, other than overpayments resulting 

from contract financing payments.

(3) A contractor, based on a determination by the Secretary of Homeland Security or the 

Attorney General of the United States, that the contractor is not in compliance with 

Immigration and Nationality Act employment provisions. Such determination is not reviewable 

in the debarment proceedings.

(k) Debarment Procedures.

(1) Due Process. The AOC shall afford the contractor (and any specifically named affiliates) 

an opportunity to submit, in person, in writing or through a representative, information and 

argument in opposition to the proposed debarment.

(i) In actions not based upon a conviction or civil judgment, if it is found that the contractor’s 

submission in opposition raises a genuine dispute over facts material to the proposed 

debarment, the AOC shall:
AOC Order 34-1 Contracting Manual, July 14, 2022 28

(A) Afford the contractor an opportunity to appear with counsel, submit documentary 

evidence, present witnesses and confront any person the AOC presents; and

(B) Make a transcribed record of the proceedings and make it available at cost to the 

contractor upon request, unless the contractor and the AOC, by mutual agreement, 

waive the requirement for a transcript.

(2) Notice of Proposal to Debar. A notice of proposed debarment shall be issued by the 

debarring official advising the contractor and any specifically named affiliates, by certified 

mail, return receipt requested: 

(i) That debarment is being considered;

(ii) Of the reasons for the proposed debarment in terms sufficient to put the contractor on 

notice of the conduct or transaction(s) upon which it is based;

(iii) That, within 30 days after receipt of the notice, the contractor may submit, in person, in 

writing or through a representative, information and argument in opposition to the 

proposed debarment, including any additional specific information that raises a genuine 

dispute over the material facts;

(iv) The effect of the issuance of the notice of proposed debarment; and

(v) Of the potential effect of an actual debarment. 

(3) Debarring Official’s Decision.

(i) In actions based upon a conviction or civil judgment, or in which there is no genuine dispute 

over material facts, the debarring official shall make a decision on the basis of all the 

information in the administrative record, including any submission made by the contractor. 

If no suspension is in effect, the decision shall be made within 30 working days after 

receipt of any information and argument submitted by the contractor, unless the debarring 

official extends this period for good cause.

(ii) In actions in which additional proceedings are necessary as to disputed material facts, 

written findings of fact shall be prepared. The debarring official shall base the decision 

on the facts as found, together with any information and argument submitted by the 

contractor and any other information in the administrative record.

(A) The debarring official may refer matters involving disputed material facts to 

another official for findings of fact. The debarring official may reject any such 

findings, in whole or in part, only after specifically determining them to be arbitrary 

and capricious or clearly erroneous.

(B) The debarring official’s decision shall be made after the conclusion of the 

proceedings with respect to disputed facts.

(iii) In any action in which the proposed debarment is not based upon a conviction or civil 

judgment, the cause for debarment must be established by a preponderance of the 

evidence.

(4) Notice of Debarring Official’s Decision. 

(i) If the debarring official decides to impose debarment, the contractor and any affiliates 

involved shall be given prompt notice by certified mail, return receipt requested: 

(A) Referring to the notice of proposed debarment;

(B) Specifying the reasons for debarment; and

(C) Stating the period of debarment, including effective dates.

(ii) If debarment is not imposed, the debarring official shall promptly notify the contractor 

and any affiliates involved, by certified mail, return receipt requested.

(iii) If the contractor enters into an administrative agreement with the AOC in order to 
AOC Order 34-1 Contracting Manual, July 14, 2022 29

resolve a debarment proceeding, the debarring official shall access the website (available 

at https://www.cpars.gov, then select FAPIIS) and enter the requested information.

(A) The debarring official is responsible for the timely submission, within 3 working 

days, and accuracy of the documentation regarding the administrative agreement.

(l) Period of Debarment.

(1) Debarment shall be for a period commensurate with the seriousness of the cause(s). 

Generally, debarment should not exceed 3 years, except:

(i) Debarment for violation of the provisions of the Drug-Free Workplace Act of 1988 may 

be for a period not to exceed 5 years; and 

(ii) Debarments for noncompliance with Immigration and Nationality Act employment 

provisions shall be for one year unless extended pursuant the paragraph below.

(2) If suspension precedes a debarment, the suspension period shall be considered in 

determining the debarment period.

(3) The debarring official may extend the debarment for an additional period, if that official 

determines that an extension is necessary to protect the government’s interest. However, a 

debarment may not be extended solely on the basis of the facts and circumstances upon 

which the initial debarment action was based. Debarments for noncompliance with 

Immigration and Nationality Act employment provisions may be extended for additional 

periods of one year if the Secretary of Homeland Security or the Attorney General 

determines that the contractor continues to be in violation of the employment provisions of 

the Immigration and Nationality Act. If debarment for an additional period is determined to 

be necessary, the procedures of above shall be followed to extend the debarment.

(4) The debarring official may reduce the period or extent of debarment, upon the contractor’s 

request, supported by documentation, for reasons such as:

(i) Newly discovered material evidence;

(ii) Reversal of the conviction or civil judgment upon which the debarment was based;

(iii) Bona fide change in ownership or management;

(iv) Elimination of other causes for which the debarment was imposed; or

(v) Other reasons the debarring official deems appropriate.

(m) Scope of Debarment.

(1) The fraudulent, criminal or other seriously improper conduct of any officer, director, 

shareholder, partner, employee or other individual associated with a contractor may be 

imputed to the contractor when the conduct occurred in connection with the individual’s 

performance of duties for or on behalf of the contractor, or with the contractor’s 

knowledge, approval or acquiescence. The contractor’s acceptance of the benefits derived 

from the conduct shall be evidence of such knowledge, approval or acquiescence.

(2) The fraudulent, criminal or other seriously improper conduct of a contractor may be 

imputed to any officer, director, shareholder, partner, employee or other individual 

associated with the contractor who participated in, knew of, or had reason to know of the 

contractor’s conduct.

(3) The fraudulent, criminal or other seriously improper conduct of one contractor participating 

in a joint venture or similar arrangement may be imputed to other participating contractors 

if the conduct occurred for or on behalf of the joint venture or similar arrangement, or with 

the knowledge, approval or acquiescence of these contractors. Acceptance of the benefits 
AOC Order 34-1 Contracting Manual, July 14, 2022 30

derived from the conduct shall be evidence of such knowledge, approval or acquiescence.

(n) Suspension. The suspending official may, in the public interest, suspend a contractor for any 

of the causes, and using the procedures, set forth below.

(1) Suspension is a serious action to be imposed on the basis of adequate evidence, pending the 

completion of investigation or legal proceedings, when it has been determined that 

immediate action is necessary to protect the government’s interest. In assessing the 

adequacy of the evidence, the AOC should consider how much information is available, 

how credible it is given the circumstances, whether or not important allegations are 

corroborated, and what inferences can reasonably be drawn as a result. This assessment 

should include an examination of basic documents such as contracts, inspection reports and 

correspondence.

(2) The existence of a cause for suspension does not necessarily require that the contractor be 

suspended. The suspending official should consider the seriousness of the contractor’s acts 

or omissions and may, but is not required to, consider remedial measures or mitigating 

factors. A contractor has the burden of promptly presenting to the suspending official 

evidence of remedial measures or mitigating factors when it has reason to know that a 

cause for suspension exists. The existence or nonexistence of any remedial measures or 

mitigating factors is not necessarily determinative of a contractor’s present responsibility.

(3) Suspension constitutes suspension of all divisions or other organizational elements of the 

contractor, unless the suspension decision is limited by its terms to specific divisions, 

organizational elements or commodities. The suspending official may extend the 

suspension decision to include any affiliates of the contractor if they are:

(i) Specifically named; and

(ii) Given written notice of the suspension and an opportunity to respond.

(o) Causes for Suspension. 

(1) The suspending official may suspend a contractor suspected, upon adequate evidence, of:

(i) Committing of fraud or a criminal offense in connection with obtaining, attempting to 

obtain, or performing a public contract or subcontract

(ii) Violation of federal or state antitrust statutes relating to the submission of offers;

(iii) Committing embezzlement, theft, forgery, bribery, falsification or destruction of records, 

making false statements, tax evasion, violating federal criminal tax laws or receiving 

stolen property;

(iv) Failing to make a good faith effort to provide a drug-free workplace by violating 41 

U.S.C. Chapter 81, Drug-Free Workplace, proven by the number of contractor employees 

convicted of violations of criminal drug statutes occurring in the workplace;

(v) Intentionally affixing a “Made in America” label (or any label having the same meaning) 

to a product sold in or shipped to the United States or its outlying areas, when the product 

was not made in the United States or its outlying areas;

(vi) Commission of an unfair trade practice as defined in FAR 9.403;

(vii) Delinquent federal taxes in an amount that exceeds $3,500;

(viii) Knowing failure by a principal, until three years after final payment on any government 

contract awarded to the contractor, to timely disclose to the government, in connection 

with the award, performance, or closeout of the contract or a subcontract thereunder, 

credible evidence of violation of federal criminal law involving fraud, conflict of interest, 
AOC Order 34-1 Contracting Manual, July 14, 2022 31

bribery or gratuity violations found in Title 18 of the United States Code, or any violations 

of the civil False Claims Act (31 U.S.C. 3729-3733; or

(2) Indictment for any of the causes in paragraph (a) of this section constitutes adequate 

evidence for suspension.

(p) Procedures.

(1) Due Process. The AOC shall afford the contractor (and any specifically named affiliates) 

an opportunity, following the imposition of suspension, to submit in person, in writing or 

through a representative, information and argument in opposition to the suspension. 

(i) In actions not based on an indictment, if it is found that the contractor’s submission in 

opposition raises a genuine dispute over facts material to the suspension and if no 

determination has been made that substantial interests of the government in pending or 

contemplated legal proceedings based on the same facts as the suspension would be 

prejudiced, the AOC shall also:

(A) Afford the contractor an opportunity to appear with counsel, submit documentary 

evidence, present witnesses and confront any person the agency presents; and 

(B) Make a transcribed record of the proceedings and make it available at cost to the 

contractor upon request, unless the contractor and the AOC, by mutual agreement, 

waive the requirement for a transcript.

(2) Notice of suspension. When a contractor and any specifically named affiliates are 

suspended, they shall be immediately advised by certified mail, return receipt requested:

(i) That they have been suspended and that the suspension is based on an indictment or other 

adequate evidence that the contractor has committed one of the causes listed above.

(ii) That the suspension is for a temporary period pending the completion of an investigation 

and such legal proceedings as may ensue;

(iii) Of the cause(s) relied upon for imposing suspension;

(iv) Of the effect of the suspension;

(v) That, within 30 days after receipt of the notice, the contractor may submit in person, in 

writing or through a representative, information and argument in opposition to the 

suspension, including any additional specific information that raises a genuine dispute 

over the material facts; and 

(vi) That additional proceedings to determine disputed material facts will be conducted 

unless: 

(A) The action is based on an indictment; or

(B) A determination is made that the substantial interests of the government in pending 

or contemplated legal proceedings based on the same facts as the suspension would 

be prejudiced.

(3) Suspending Official’s Decision.

(i) In actions based on an indictment in which the contractor’s submission does not raise a 

genuine dispute over material facts or in which additional proceedings to determine 

disputed material facts have been denied the suspending official’s decision shall be based 

on all the information in the administrative record, including any submission made by the 

contractor. 

(ii) In actions in which additional proceedings are necessary as to disputed material facts, 

written findings of fact shall be prepared. The suspending official shall base the decision 

on the facts as found, together with any information and argument submitted by the 
AOC Order 34-1 Contracting Manual, July 14, 2022 32

contractor and any other information in the administrative record.

(A) The suspending official may refer matters involving disputed material facts to 

another official for findings of fact. The suspending official may reject any such 

findings, in whole or in part, only after specifically determining them to be arbitrary 

and capricious or clearly erroneous.

(B) The suspending official’s decision shall be made after the conclusion of the 

proceedings with respect to disputed facts.

(iii) The suspending official may modify or terminate the suspension or leave it in force. 

However, a decision to modify or terminate the suspension shall be without prejudice to 

the subsequent imposition of:

(A) Suspension by any other agency; or

(B) Debarment by any agency.

(4) Notice of Suspending Official’s Decision.

(i) Prompt written notice of the suspending official’s decision shall be sent to the contractor 

and any affiliates involved, by certified mail, return receipt requested.

(ii) If the contractor enters into an administrative agreement with the AOC in order to 

resolve a suspension proceeding, the suspending official shall access the website 

(available at www.cpars.csd.disa.mil, then select FAPIIS) and enter the requested 

information.

(A) The suspending official is responsible for the timely submission, within 3 working 

days, and accuracy of the documentation regarding the administrative agreement.

(q) Period of Suspension.

(1) Suspension shall be for a temporary period pending the completion of investigation and any 

ensuing legal proceedings, unless terminated sooner by the suspending official or as 

provided above.

(2) If legal proceedings are not initiated within 12 months after the date of the suspension 

notice, the suspension shall be terminated unless it be extended for an additional 6 months. 

In no event may a suspension extend beyond 18 months, unless legal proceedings have 

been initiated within that period.

(r) Scope of Suspension. The scope of suspension shall be the same as that for debarment.

1.5.7. Contractor Financial Difficulty or Bankruptcy

Situations may arise where a contractor encounters financial problems during the course of 

contract execution and must enter bankruptcy proceedings. Upon notice of such proceedings, 

COs will contact OGC for advice.

1.5.8. Nonresponsibility Determinations

Except where small businesses are concerned in accordance with CM §4.2.2, Relationship with 

the Small Business Administration (SBA), the CO shall make a non-responsibility determination 

if, after careful consideration of all available information, there is not a clear indication that the 

prospective contractor meets the minimum requirements set forth in CM §1.5.4. Also, doubt as to 

the contractor’s productive capacity or financial strength that cannot be resolved affirmatively 

shall require a nonresponsibility determination.
AOC Order 34-1 Contracting Manual, July 14, 2022 33

(a) Documentation.

(1) Nonresponsibility determinations, when the proposed award is > $250,000, shall be 

documented in a D&F.

(2) Nonresponsibility determinations on proposed awards of ≤ $250,000 shall be documented in 

an appropriate format as to the reason for the determination.

(3) Copies of any nonresponsibility determination shall be included in the contract.

(b) Contractor Notification. The affected contractor shall be notified of the determination by 

letter, signed by the CO. Copies of the letter shall be made a part of the contract file and the 

contractor’s compliance file.

(c) Data Disclosure. The details or circumstances resulting in a determination of nonresponsibility shall not be made available to anyone outside the government, except to the 

affected contractor when deemed necessary by the CO. The disclosure of such information may 

be made to, or summarized for, other government offices or agencies upon request.

1.6. Government Furnished Property

1.6.1. Scope

(a) This section sets forth policies with respect to providing government-furnished property 

(GFP) for use by AOC contractors.

(b) Property provided under AOC contracts is subject to the specific terms and conditions of the 

contract under which it is furnished. When such property is to be provided, the CO through the 

COR is required to track the contractor’s compliance with property-related AOC policy and 

clauses.

1.6.2. Identification of GFP in Solicitations

COs shall insert the appropriate GFP clause shown in the version of the Matrix Checklist in 

effect at the time of solicitation for any GFP the government will furnish GFP during the period 

of contract performance. GFP has a direct impact on the offeror’s pricing proposal. If a contract 

does not specifically state that the AOC will provide GFP, it shall not be provided without the 

CO negotiating with the contractor regarding the terms and conditions and any reduction in 

price relative to the GFP.

1.6.3. GFP Responsibilities

(a) The COR designation letter delineates COR responsibilities relative to GFP including the 

description, type and quantities of GFP.

(b) The COR is responsible for coordinating the issuance and return of GFP.

(c) Any GFP provided to the contractor for use during the performance of a contract shall be 

issued to the contractor’s representative and recorded by the COR on AOC Form 1423, AOC 

Property Issued to Contractors. The contractor’s representative shall be responsible for ensuring 

the proper care and use of the GFP. Form 1423 shall be executed by all parties involved with 

issuing and tracking the GFP, with a copy retained by the COR and the CO.
AOC Order 34-1 Contracting Manual, July 14, 2022 34

(d) GFP provided by the AOC shall be used only for conducting official business on behalf of 

the AOC. Note: Providing AOC-owned cell phones to contractors is strongly discouraged.

(e) All GFP shall be returned by the contractor to the COR in the same condition as issued, with 

allowances for wear and tear that occurs with responsible care and use. Failure to return GFP or 

the return of GFP that has not been properly maintained and used may result in a reduction to the 

contract price that reflects the market replacement value of the property or the market price to 

repair or restore the property to its condition when issued to the contractor.

1.7. Contingent Fees

1.7.1. Covenant Against Contingent Fees

Every contract shall include the appropriate Covenant Against Contingent Fees clause shown in 

the version of the Matrix Checklist in effect at the time of solicitation.

1.7.2. Policy Against Contingent Fees

Contingent fee means any commission, percentage, brokerage, or other fee that is contingent 

upon the success that a person or concern has in securing a government contract. Contractors’ 

arrangements to pay contingent fees for soliciting or obtaining government contracts have long 

been considered contrary to public policy because such arrangements may lead to attempted or 

actual exercise of improper influence. However statutes allow contingent fee arrangements 

between contractors and bona fide employees or bona fide agencies as reflected in the Covenant 

Against Contingent Fees clause.

1.7.3. Enforcement

(a) Individuals who suspect or have evidence of attempted or actual exercise of improper 

influence, misrepresentation of a contingent fee arrangement, or other violation of the Covenant 

Against Contingent Fees clause shall report the matter promptly to the CO.

(b) When there is specific evidence or other reasonable basis to suspect a contingent fee 

violation, the Chief DCA or the Chief SSMMD, as applicable, shall after consultation with the 

OGC, take or direct one or more of the following, or other, actions:

(1) If before award, reject the bid or proposal

(2) If after award, enforce the government’s right to annul the contract or to recover the fee

(3) Initiate suspension or debarment action under this CM

1.8. Buy American

1.8.1. General

(a) Policy. The AOC is not authorized to follow the Buy American Act (BAA) and the Executive 

Orders implementing the BAA in the FAR. However, Congress has directed that the AOC shall 

Buy American. As such, this section establishes rules for the use of U.S. manufactured materials, 

supplies or articles acquired for AOC use. These items shall be substantially constituted from 

domestically mined or manufactured articles or supplies.
AOC Order 34-1 Contracting Manual, July 14, 2022 35

(b) Definitions.

 (1) Component means an article, material or supply incorporated directly into an end product or 

into another component.

 (2) End product means an article, material or supply to be acquired for public use.

 (3) Domestic end product means:

(i) An unmanufactured end product that has been mined or produced in the United States

(ii) An end product manufactured in the United States if the cost of the components mined, 

produced or manufactured in the United States exceed 55 percent of the cost of all its 

components

 (4) United States means the 50 states, the District of Columbia and outlying areas (i.e., Puerto 

Rico, American Samoa, the U.S. Virgin Islands and any other place subject to United States 

jurisdiction).

 (5) Foreign end product means an end product other than a domestic end product.

1.8.2. Implementation

(a) The AOC restricts the purchase of supplies (including construction materials and services in 

which supplies are furnished) that are not domestic end products. This restriction applies to any 

and all purchases at the AOC regardless of dollar amount.

(b) For manufactured products, the AOC uses a two-part test:

 (1) The article must be manufactured in the United States.

 (2) The cost of domestic components must exceed 55 percent of the cost of all components.

(c) For iron and steel, the domestic content requirement is 95 percent. Foreign iron and steel is

iron or steel products that are not produced in the United States.

(d) A foreign end product may be purchased if the CO determines:

 (1) That a domestic end product is unavailable, including not available in sufficient quantities;

 (2) The product is customarily used and sold, leased or licensed to the general public in 

substantial quantities in the commercial marketplace (commercial product);

 (3) That the price of the lowest domestic end product is unreasonable; or

 (4) The CO justifies the foreign product purchase placing a D&F in the contract file.

(e) Except for commercial products, when a foreign product is purchased, contract files must 

include a justification for acquiring the foreign end product. When justifying the purchase of a 

foreign end product based on price, the following evaluation shall apply with a copy placed in 

the contract file. The copy of this evaluation will serve as the appropriate documentation 

required by this paragraph:

 (1) If the domestic end product is made by an American small business, 30 percent must be 

added to the price of the foreign end product and the foreign end product must still be less 

than the domestic end product.

 (2) If the domestic end product is made by an American large business, 20 percent must be

added to the price of the foreign end product and the foreign end product must still be less 

than the domestic end product. 
AOC Order 34-1 Contracting Manual, July 14, 2022 36

1.9. Contract Review Board

1.9.1. Contract Actions

As indicated in the table below, contract actions are subject to a process review and a legal 

review. The process review is performed within the appropriate contracting office, and the legal 

review is requested from OGC. Any individual in the process review may elect to send the 

contract action to OGC for a legal review after a process review by their Branch Chief. Branch 

Chiefs may also review any contract action within their area of responsibility at any time and 

regardless of dollar value of the procurement.

Document Reviews and 

Thresholds

A = Approval of Document(s) D = Discretionary Review

R = Required Review

≥GS-9 Peer 

CO

Branch or

Assoc. Branch

Chief

OGC

Chief

CM Chapter 7

Small Purchases

≥$100K but ≤$200K R A

 >$200K but ≤$250K R R A* D

CM 9.1 

Negotiated Actions

(all solicitation, 

awards and mods**)

≤$500K R A D

>$500K but <$25M R R A R

>$25M R R R R A

All Actions 

Not Negotiated

(solicitations, awards 

and mods)

≤$500K R A D

>$500K but <$25M R R A D

>$25M R R R D A

Interagency 

Acquisitions

(including MOUs)

<$500K R A D

>$500K R R A D

Cure Notices, ShowCause Notices, T4C, 

T4D, CO Final 

Decisions

Any amount R R R R A

*Branch Chief or Team Lead **OGC review of Mods is not “R” required but “D” discretionary

The total value of the contract action, including options, shall be used in determining if a contract 

action is subject to a process review. For review purposes, the total value is calculated without 

regard to additive or negative values. For example, a modification that proposes to add $100,000 

in additional work and delete $25,000 of existing work has a total value of $125,000.

1.9.2. Procedures

(a) A complete review sequence would include the Branch Chief or Associate Chief, if one 
AOC Order 34-1 Contracting Manual, July 14, 2022 37

exists; the Chief DCA or Chief SSMMD as applicable; and OGC. The CO must build adequate 

review time into the procurement process. As a general rule, the time for a process review by 

any Chief, is two work days and legal review by OGC is three work days.

(b) After review by the Branch Chief, the CO must resolve/correct all comments and either 

resolve highly recommended comments or provide an explanation as to why corrective action 

was not taken. These corrections and/or explanations must be incorporated into the contract 

action and resubmitted for review to the Branch Chief. When resubmitted, comments from 

previous review(s) must be sent with the file. This step may be repeated, as necessary, to the 

satisfaction of the Branch Chief.

(c) Upon satisfactory review by the Branch Chief, the contract action may be sent for further 

review in accordance with the above table. The CO must provide a new document that 

incorporates corrections as well as written explanations to the reviewing official’s comments.

1.10. Market Research

1.10.1. General

Market research is an investigation of the market-place to evaluate:

(a) If a commercial good or service is available

(b) Current industry trends, news and information

(c) The nature of the competitive environment for the product or service

1.10.2. Requirement

Market research shall be performed:

(a) When developing requirements documents

(b) Before issuing solicitations above the competition threshold

(c) When submitting a sole source or brand name justification

1.10.3. Sources for Market Research

The following are generally regarded as leading resources used to perform market research:

(a) Knowledgeable people within government and industry such as GSA contracting officials or 

trade associations.

(b) Independent research for the same or similar requirements (e.g., internet searches)

(c) Publish formal RFI in Contract Opportunities

(d) Commercial catalogs and product literature

(e) Government-wide contracts
AOC Order 34-1 Contracting Manual, July 14, 2022 38

1.11. Procurement Integrity

1.11.1. General

AOC Order 38-1, Standards of Conduct and Government Ethics, defines minimal standards of 

conduct and ethical rules required of all AOC employees. Jurisdiction heads must ensure that 

employees involved in the procurement process: 

(a) Familiarize themselves with AOC Order 38-1

(b) Complete the annual Ethics training provided by OGC

(c) Comply with the standards and rules established in AOC Order 38-1

(d) Seek OGC advice when they are uncertain about a specific procurement or ethics situation

1.11.2. Disclosure, Protection and Marking of Contractor Bid or Proposal Information and 

Source Selection Information

(a) No person or other entity may disclose contractor bid or proposal information or source 

selection information to any person other than a person authorized to receive such information, 

in accordance with applicable policies of this manual and as authorized by the CO.

(b) Contractor bid or proposal information and source selection information shall be protected 

from unauthorized disclosure in accordance with applicable law, AOC policies and this manual.

(c) Individuals responsible for preparing material that may be source selection information shall 

mark the cover page of the documents “SOURCE SELECTION SENSITIVE INFORMATION.”

(d) If the CO believes that information is inappropriately marked, the contractor that has affixed 

the marking shall be notified in writing and given an opportunity to justify the marking.

(1) If the contractor agrees that the marking is not justified, or does not respond within the time 

specified in the notice, the CO may remove the marking and the information may be

released.

(2) If after reviewing any contractor submitted justification, the CO determines that the 

marking is not justified, the CO shall notify the contractor in writing.

(3) Information marked by the contractor as proprietary, otherwise marked as contractor bid or 

proposal information, or marked in accordance with RFP instructions, shall not be released 

until:

(i) The review of the contractor’s justification has been completed or

(ii) The period specified for the contractor’s response has elapsed, whichever is 

earlier

(e) Nothing in this section restricts or prohibits:

(1) Individual meetings between an AOC official and an offeror or potential offeror, provided 

that unauthorized disclosure or receipt of contractor bid or proposal information or source 

selection information does not occur

(2) The government’s use of technical data in a manner consistent with the government’s rights 

in the data
AOC Order 34-1 Contracting Manual, July 14, 2022 39

(f) Nothing in this subsection shall be construed to authorize:

 (1) Withholding any information pursuant to a proper request from Congress, any committee or 

subcommittee thereof, a federal agency, the Comptroller General, or an Inspector General of 

a federal agency, except as otherwise authorized by law or regulation. Any such release that 

contains contractor bid or proposal information or Source Selection Sensitive Information 

shall clearly notify the recipient that the information or portions thereof are contractor bid or 

proposal information or Source Selection Sensitive Information related to the conduct of a 

government procurement, the disclosure of which is restricted

 (2) Withholding information from, or restricting its receipt by, the GAO in the course of a bid 

protest

 (3) Releasing information after contract award or cancellation of a procurement if such 

information is contractor bid or proposal information or source selection information which 

pertains to another procurement

1.11.3. Organizational Conflict of Interest

(a) Contractors who prepare specifications, work statements and systems engineering are 

prohibited from participating in an acquisition related to the referenced work prepared.
AOC Order 34-1 Contracting Manual, July 14, 2022 40

CHAPTER II. ACQUISITION PLANNING AND COMPETITION

2.1. General

(a) The AOC shall perform formal acquisition planning for procurements to promote and provide 

for full and open competition and to ensure selection of the appropriate contract type. Planning 

shall integrate the efforts of all personnel responsible for significant aspects of the acquisition. 

The purpose of acquisition planning is to ensure that the government meets its needs in the most 

effective, economical and timely manner. 

(b) As soon as possible following the identification of an agency need or requirement covered by 

this policy, acquisition planning and discussions shall begin between the 

organization/jurisdiction and the contracting office well in advance of the fiscal year in which 

contract award is necessary. Discussions concerning the acquisition approach shall result in an 

agreement regarding which elements of the Acquisition Plan (AP) the CO will assist the 

organization/jurisdiction in preparing and the date the AP will be provided to the CO. 

Discussions shall include, but are not limited to:

 (1) Determining the intended acquisition strategy and contract/order type, including using

options

 (2) Reviewing the requirements document (i.e., SOW, Performance Work Statement (PWS),

and specifications)

 (3) Evaluating the potential for and maximizing the use of competitive procedures

 (4) Performing market research, identifying potential sources and determining small business 

subcontracting opportunities

 (5) Preparing an acquisition milestone schedule

 (6) Determining if multi/intra-agency contracting is possible

2.2. The Acquisition Plan

(a) An AP shall be used for all acquisitions expected to exceed $1,000,000 (including options), 

any negotiated procurement over $500,000 and other acquisitions as desired. The AP must 

identify those milestones at which decisions should be made and address all the technical, 

business, management and other significant considerations that will control the acquisition. The 

AP and all of its elements and attachments are considered Source Selection Sensitive 

Information prepared to evaluate offers and enter into an AOC contract. Disclosure of Source 

Selection Sensitive Information is prohibited and would jeopardize the integrity or successful 

completion of the procurement. Consistent with AOC policy, Source Selection Sensitive 

Information shall be shared or disclosed on a need-to-know basis only as determined by the CO. 

(b) The specific content of an AP will vary, depending on the nature, circumstances and 

complexity of the acquisition. A format for preparing the AP is available on the AOC shared 

network folders. AOC staff shall use this format when developing the AP. APs are required as 

noted above except for the following acquisitions:

 (1) Letter contracts

 (2) Unsolicited proposals

 (3) Regulated utility services available from only one source

 (4) Orders placed under GSA FSS contracts
AOC Order 34-1 Contracting Manual, July 14, 2022 41

 (5) TOs or DOs less than $1,000,000 placed under:

(i) An existing AOC Indefinite Delivery Indefinite Quantity (IDIQ) contract provided there is 

an approved AP document for the original action if required by this policy, and there is no 

significant deviation from the AP

(ii) An existing AOC BPA, provided there is an approved AP document for the original action 

if required by this policy, and there is no significant deviation from the AP

 (6) Contract/order modifications that:

(i) Exercise options

(ii) Only provide additional funding

(iii)Make changes authorized by the Changes clause contained in the contract

(c) Acquisition Plan Waiver.

 (1) A standard form for preparing an AP waiver request is available on the AOC shared 

network folders. AOC staff shall use this format when requesting a waiver of an AP.

 (2) In cases of public exigency the Chief DCA or Chief SSMMD, as applicable, may waive in 

writing the requirement for completion of an AP. A waiver request shall not be granted 

based on the lack of advance planning.

(d) Content. An AP shall address each applicable element shown in the AP template. Elements 

that are not applicable to an individual acquisition shall be marked N/A. The scope and depth of 

an AP may vary depending on the nature, complexity and estimated price of the proposed 

acquisition.

(e) Format. An AP shall consist of six parts with standard headings. Within each of the six parts, 

there are required components that cannot be modified and specific areas where changes, 

additions or deletions can be made. APs will be formatted as follows:

 (1) Part I - Transmittal and Approval Form

 (2) Part II - Summary Sheet

 (3) Part III - Project Considerations and Information

 (4) Part IV - Acquisition Milestone Schedule

 (5) Part V - Independent Government Estimate

 (6)Part VI - Attachments

(f) Reviews. Before the organization/jurisdiction transmits the AP to the CO, technical and 

requirements personnel from the organization/jurisdiction, the organization/jurisdiction head, or 

its deputy, and other AOC staff as shown in signature blocks contained in the AP, shall review 

the AP and certify that it provides all required information in the prescribed format and that:

 (1) All vague and ambiguous language has been eliminated

 (2) A thorough technical review of the agency requirement has been completed and the 

development of a requirements document has been completed

 (3) The project is structured by phases or tasks, as appropriate

 (4) Methods are available to assess the contractor’s performance

 (5) The acquisition mechanism is appropriate (i.e., the principal purpose of the project and 

acquisition mechanism is to acquire supplies/services or construction for the direct benefit 

or use of the government in the most effective, economical and timely manner)

 (6) The planned obligation of appropriated funds is budgeted for the project and satisfies a bona 

fide need arising in the fiscal year for which the appropriation was made
AOC Order 34-1 Contracting Manual, July 14, 2022 42

(g) Delivering the AP to the CO. Technical and requirements personnel from the 

organization/jurisdiction shall convey the signed AP to the CO by providing a completed Part 1 -

Transmittal and Approval Form, with all other parts of the AP attached. The AP shall be 

provided no later than the date agreed to in the acquisition milestone schedule, unless a different 

date is established by mutual agreement of the organization/jurisdiction head, or its deputy and 

the Chief, DCA or the Chief, SSMMD, as applicable. The CO shall review the AP and certify 

that it provides all required information in the prescribed format.

(h) Acquisition Milestone Schedule. The CO shall retain the acquisition milestone schedule in the 

contract file and update/revise it to track progress of the acquisition. Any revisions to the 

milestone schedule that will impact the award date shall be agreed to mutually between the 

organization/jurisdiction and the Chief, DCA or the Chief, SSMMD, as applicable. Failure to 

meet established milestones shall be immediately reported to the CO, the 

organization/jurisdiction head, or its deputy and to the Chief, DCA or Chief, SSMMD, as 

applicable.

(i) Responsibility for Acquisition Plans.

Acquisition Planning Responsible Organization

Establish standard acquisition lead times and 

deadlines for receipt of requirements for 

award in an applicable fiscal year

Chief DCA or Chief SSMMD as applicable

Begin acquisition planning to identify and 

plan particularly complex requirements and 

long lead time acquisitions in advance of the 

fiscal year in which they are awarded

Technical and requirements personnel from 

the organization or jurisdiction;

organization/jurisdiction head or its deputy

Participate in acquisition planning; prepare 

the AP and provide it to the CO

Technical and requirements personnel from 

the organization or jurisdiction;

organization/jurisdiction head or its deputy

Participate in acquisition planning and assist 

in AP preparation

CO; Chief DCA or Chief SSMMD as 

applicable

Review and certify that an AP is complete, 

accurate and in the proper format

Technical and requirements personnel from 

the organization or jurisdiction;

organization/jurisdiction head or its deputy;

CO; Chief DCA or Chief SSMMD as 

applicable

Make necessary interim changes to the AP 

and notify all affected stakeholders

CO; organization/jurisdiction head or its 

deputy; Chief DCA or Chief SSMMD as 

applicable

Waive requirements for development of an 

AP, when justified

Chief DCA or Chief SSMMD as applicable

Meet established acquisition milestone date. Technical and requirements personnel from 

the organization or jurisdiction; CO
AOC Order 34-1 Contracting Manual, July 14, 2022 43

2.3. Competition

2.3.1. Full and Open Competition

(a) AOC policy is to promote full and open competition in the procurement process and fully 

justify acquisitions using other than full and open competition to include sole source awards. Full 

and open competition means that all responsible sources shall be permitted to compete. This 

policy applies to all acquisitions above the AOC competition threshold except:

 (1) AOC contracts awarded using contracting procedures that are expressly authorized by 

statute, or other law

 (2) Contract modifications that are within the scope and under the terms of an existing AOC 

contract, including exercising priced options that were evaluated as part of the initial 

competition

 (3) Task/delivery/purchase orders placed under existing requirements, definite-quantity or 

indefinite-quantity contracts (i.e., IDCs)

(b) Examples of competitive procedures that promote full and open competition are:

 (1) RFQs

(2) Use of multiple award schedules issued under the procedures established by the GSA 

Administrator

 (3) Sealed Bidding - IFBs

 (4) Negotiated Contracts - RFPs

2.3.2. Full and Open Competition After Excluding Sources

(a) Acquisitions made after exclusion of sources shall use the competitive procedures 

listed in this manual providing for full and open competition after excluding one or more 

sources.

(b) COs may exclude a particular source from an acquisition to establish or maintain a 

source(s) for the requirement needed if a D&F placed in the contract file establishes doing 

so would:

 (1) Increase or maintain competition and likely result in reduced overall price for the 

acquisition (when this paragraph is cited, the D&F shall include a description of the 

estimated reduction in overall prices and how the estimate was derived)

(2) Be in the interest of national security in having supplies or services available in case 

of an emergency

(3) Ensure the continuous availability of a reliable source of supplies or services

(c) Every proposed acquisition made after excluding one or more sources shall be supported by 

a D&F signed by a CO acting within the scope of their delegation of procurement authority. A 

D&F shall not be made on a class basis. Organizations/jurisdictions are responsible for 

providing the CO all necessary data to support their recommendation to exclude a particular 

source. The organization/jurisdiction head, or their deputy, is responsible for certifying the D&F 

as accurate and for providing a completed D&F to the CO for approval. All D&Fs required by 

this section shall be created using the Determination and Findings (D&F) - Exclusion of One or 

More Sources form.
AOC Order 34-1 Contracting Manual, July 14, 2022 44

(d) The D&F shall set forth enough facts to clearly justify the specific determination made.

At a minimum, each D&F shall include the following information:

 (1) The organization/jurisdiction

 (2) Description of the supplies or services to be acquired

 (3) The particular circumstances, facts or reasoning that supports why the source(s) should be 

excluded from the acquisition

 (4) Necessary supporting documentation

 (5) A determination, based on the findings, that the proposed action is justified.

 (6) The dated signature of the CO approving the D&F

(e) COs may set aside small purchase solicitations to allow only small business concerns to 

compete. No separate justification or D&F is required to set aside a small purchase 

contract action for small business concerns.

2.3.3. Other Than Full and Open Competition

(a) Requirements.

 (1) Contracting without providing for full and open competition is not permitted unless allowed 

by one of the authorities listed below. Any contract awarded using other than full and open 

competition shall contain a reference to the authority under which it is to be awarded and the 

contract file shall contain an approved justification for other than full and open competition. 

Where more than one authority may apply, the justification shall reference multiple 

citations.

(2) Sole source acquisitions shall not be justified on the basis of: 

(i) A lack of advanced acquisition planning by the organization/jurisdiction 

(ii) Concerns related to expiring funds or the amount of funds available

(b) Circumstances providing authority for other than full and open competition.

(1) Public Exigency. An unusual and compelling urgency requiring immediate delivery or 

performance of an AOC requirement. Used when the AOC would suffer serious financial 

loss or other damage if the supplies or services were not furnished by a certain date and 

when they could not be procured by that date by means of full and open competition. The 

justification for contracts awarded under this authority may be prepared and approved 

within a reasonable time after contract award when preparation and approval before award 

would unreasonably delay the acquisition.

(2) Only One Source (Sole Source). Only one source of supply is available to meet the AOC’s 

needs/requirements. Use of this authority may be appropriate in the following situations 

(these examples are not intended to be all-inclusive):

(i) When there is a reasonable basis to conclude that the agency’s minimum needs can only 

be satisfied by unique supplies or services available from only one source/supplier

(ii) A supply or service is not otherwise available to the government

(iii)Supplies or services available only from the original source in the case of a follow-on 

contract when it is likely that award to any other source would result in either:

A. Substantial duplication of cost to the government that is not expected to be recovered

through competition

B. Unacceptable delays in fulfilling the agency’s requirements

(iv)The existence of limited rights in data, patent rights, copyrights or secret processes; the 
AOC Order 34-1 Contracting Manual, July 14, 2022 45

control of basic raw material; or similar circumstances, make the supplies/services 

available from only one source

(v) When acquiring utility services circumstances may dictate that only one supplier can 

furnish the service; or when the contemplated contract is for construction of a part of a 

utility system and the utility company itself is the only source available to work on the 

system

(vi)When the Architect of the Capitol has determined in accordance with an agency 

standardization program that only specified makes/models of technical equipment and 

parts will satisfy the AOC’s needs for additional units or replacement items, and only one 

source is available

(3) Technical and Professional Services. Services are performed by the contractor in person 

which are technical and professional in nature or under AOC supervision and paid for on a 

time basis

(4) Security Related Project (2 U.S.C. § 1821(a)(2)). Services, equipment and construction for 

security projects

(5) Other Statutory Authority

(c) Justification.

(1) Justifications required by this section may be made on an individual or class basis.

Whenever a justification is made and approved on a class basis, the CO shall ensure that 

each contract action taken pursuant to the authority of the class justification is within the 

scope of the class justification and shall document each contract action.

(2) Technical and requirements personnel from the organization/jurisdiction are responsible for 

providing a completed justification to the CO, including all necessary data to support their 

recommendation for a sole source acquisition.

(d) Contents of Justification.

(1) All justifications required by this section shall be created using the Justification for Other 

Than Full and Open Competition form.

(2) Each justification shall include the following information:

(i) The requiring activity (name of organization/jurisdiction)

(ii) A description of the supplies or services required to meet the agency’s needs: 

(iii) The estimated value of the acquisition, including all options

(iv) A description of the market research conducted and the results

(v) An identification of the statutory authority permitting the acquisition under this section

(vi) Sufficient facts and rationale to justify using the specific statutory authority cited

(vii) When the Public Exigency statute is cited, data, estimated price or other rationale as to 

the extent and nature of the harm to the government

(viii)When the Only One Source or Brand Name authority is cited, an explanation of why 

only the proposed contractor’s unique qualifications or the brand name product can 

satisfy the government’s requirement:

a. When the Only One Source or Brand Name authority is cited for follow-on 

acquisitions, an estimate of the cost to the government to re-solicit the 

requirement and how the estimate was derived

(ix) When applicable, an explanation of why technical data packages, specifications, 

engineering descriptions, statements of work or purchase descriptions suitable for full 
AOC Order 34-1 Contracting Manual, July 14, 2022 46

and open competition have not been developed or are not available

(x) A certification by the organization/jurisdiction head, or the deputy, that the information 

and supporting data that forms a basis of the justification is complete and accurate

(xi) CO certification that the justification is accurate and complete to the best of the CO’s 

knowledge and belief

(e) Approval of Justification.

(1) For a proposed small purchase contract above the AOC competition threshold, the signature 

of the Branch Chief, SSMMD Simplified Acquisition Branch will serve as approval.

(2) For a proposed contract above the Small Purchase Threshold but not exceeding $25 million, 

the signature of the appropriate DCA or SSMMD Branch Chief or Associate Branch Chief 

will serve as approval. This authority is not delegable.

(3) For a proposed contract over $25 million the signature of the Chief, DCA or Chief, 

SSMMD, as applicable, will serve as approval. This authority is not delegable.

(4) The Chief, DCA or Chief, SSMMD, as appropriate, shall approve a class justification. This 

authority is not delegable.

(5) The estimated dollar value of all options shall be included in determining the required level 

of justification approval.

2.4. Brand Name Products

2.4.1. Restrictive Specifications

(a) Brand name products shall not be used unless the particular brand name product is essential 

to the AOC’s requirements and market research indicates other companies’ similar products do 

not meet, or cannot be modified to meet, the AOC’s needs. When an acquisition contains a brand

name product, the CO shall include an approved justification for other than full and open 

competition in the contract file.

(b) A brand name product means a brand name description, or other purchase description, to 

specify a particular brand name, product or feature (salient characteristic) of a product peculiar to 

one manufacturer.

(c) COs shall exercise due diligence to identify a brand name product created by the description 

of salient characteristics of a brand name product in the specifications as mandatory 

requirements. Salient characteristics are sometimes inserted into specifications listing specific 

brand name product physical and functional features. Without the approved justification for other 

than full and open competition in the contract file required by this section, brand name 

specifications that restrict competition and shall not be used in AOC acquisitions.

(d) If only a portion of the acquisition is for a brand name product or item peculiar to one 

manufacturer, an approved justification for other than full and open competition in the contract 

file is required. This D&F shall cover only the portion of the acquisition that is brand name or 

peculiar to one manufacturer, and so state, and shall indicate why the use of such brand name 

product is essential to the AOC’s requirements.

(e) For acquisitions through the GSA FSS, justification for a brand name product is required at 
AOC Order 34-1 Contracting Manual, July 14, 2022 47

the order level when the justification for the brand name item was not completed for the FSS or 

does not adequately cover the requirements in the AOC order even if the brand name product is 

available on more than one Schedule.

2.4.2. Brand Name or Equal

Brand name or equal descriptions, and other purchase descriptions that permit offerors to supply 

products other than those specifically referenced by brand name, provide for full and open 

competition and do not require a D&F.

2.5. Submitting Requirements

(a) Offices/Jurisdictions shall submit an FMS Requisition for all proposed AOC purchases.

(b) All FMS Requisitions shall include the following, but may not be limited to:

 (1) An approved and processed AOC FMS requisition

 (2) Market Research efforts

 (3) A list of recommended sources if applicable

 (4) An IGE (separately priced for the base term and any additional option term if applicable)

(5) A Requirements document (e.g., SOW, purchase description, drawings and specifications

etc)

 (6) A Request for Small Purchase form for requirements not exceeding $250K

 (7) For a proposed Negotiated Contract, a list of possible evaluation factors and subfactors

 (8) A completed and fully signed Appropriations Lapse form for AOC Contracts

(c) In addition to the above when applicable:

(1) Services require a Certification of Nonpersonal Services form

 (2) Information Technology equipment and services ITD approval in writing

 (3) Construction requires computation of liquidated damages and magnitude of construction

costs

 (4) Sole source and/or brand-name requirements need a fully executed Other than Full and 

Open Competition from

2.6. Nonpersonal Services

(a) Congress has specifically authorized the AOC to procure temporary or intermittent personal 

services by contract (not in excess of one year) for individual experts and consultants and when 

the services are required to be performed by the contractor in person and are of a technical and 

professional nature or under government supervision and paid for on a time basis. 

Notwithstanding this specific statutory authority for entering into a personal services contract, 

organizations/jurisdictions shall obtain the review and opinion by OGC before submitting such 

procurement actions to the contracting office.

(b) The AOC requires that contract requirements include language to provide a clear distinction 

between government employees and contractor employees. Personal services contracts are 

characterized by the employer-employee relationship created between the government and the 

contractor’s personnel. A personal services contract, because of its contract terms, or by the way 

the contract is administered post award, makes contractor staff appear to be government 

employees. Personal services contracts are prohibited as a matter of public policy because such 

work should be performed by government employees in accordance with direct hire and 

competitive appointment procedures. Normally, the government is required to obtain its 
AOC Order 34-1 Contracting Manual, July 14, 2022 48

employees by direct hire, under competitive appointment or other procedures required by civil 

service laws. Obtaining personal services by contract, rather than by civil service laws, 

circumvents those laws unless Congress has specifically authorized personal services by 

contract. 

(c) Each proposed service contract must be evaluated in the light of its own facts and 

circumstances. Organizations/jurisdictions will need to determine if the proposed service 

contract requires the government to exercise relatively continuous supervision and control over 

the contractor personnel performing under the contract. For example, unauthorized supervision 

of one contractor employee is problematic, while relatively continuous government supervision 

of a substantial number of contractor employees would violate policy against personal services 

contracts. Contract requirements and statements of work must be developed carefully. The 

following descriptive elements should be used as a guide in assessing whether or not a proposed 

contract is personal in nature:

 (1) Performance on site

 (2) Principal tools and equipment are furnished by the government

 (3) Services are applied directly to the integral effort of agencies or an organizational subpart in 

furtherance of assigned function or mission

 (4) Comparable services, meeting comparable needs, are performed in the same or similar 

agencies using civil service personnel

 (5) The need for the type of service provided can reasonably be expected to last beyond one 

year

 (6) The inherent nature of the service, or the manner in which it is provided, reasonably requires 

directly or indirectly, government direction or supervision of contractor employees to:

(i) Adequately protect the government’s interest

(ii) Retain control of the function involved

(iii) Retain full personal responsibility for the function supported in a duly authorized 

federal officer or employee

(d) Service contracts shall require contractor employees to identify themselves as contractor 

personnel by introducing themselves or being introduced as contractor personnel and wearing a 

distinctive badge or other identifier that distinguishes them from AOC employees. In addition, 

contracts shall require contractor personnel to appropriately identify themselves as contractor 

employees in telephone conversations and in formal and informal written correspondence.

(e) Contracting staff shall review contract requirements and SOWs for compliance with this 

manual. Organization/jurisdiction managers shall execute a Certification of Nonpersonal 

Services form when submitting purchase requests to the appropriate contracting office and shall 

ensure that a service contract does not inadvertently become administered as a personal services 

contract.
AOC Order 34-1 Contracting Manual, July 14, 2022 49

CHAPTER III. CONTRACTOR LABOR RELATIONS

3.1. Policy

3.1.1. General

(a) COs shall brief leadership and consult with OGC as appropriate when dealing with contractor 

noncompliance with labor regulations. 

(b) It is in the interest of the AOC to encourage the best possible relations with industry and 

labor so that requirements for construction, supplies and services may be obtained without delay 

and at a reasonable cost.

(c) This is not to imply that the AOC will become involved in a contractor’s labor problems. The 

AOC shall not take a position on the merits of a dispute between private management and labor 

or engage in conciliation, mediation or arbitration actions.

3.1.2. Contract Administration

(a) Labor disputes may give rise to work stoppages which cause delays in the timely 

performance of AOC contracts. The CO shall notify contractors that they will be held 

accountable for delays that are reasonably avoidable. It should be emphasized that the standard 

clauses dealing with default and excusable delays do not relieve contractors for delays that are

within their control, or their subcontractor’s control, such as may be the case with delays 

precipitated by an unfair labor practice of a contractor.

(b) All COs shall cooperate, and encourage contractors to cooperate, with federal and state 

agencies responsible for enforcing labor requirements including health, safety, maximum hours 

and minimum wages, child and convict labor, and equal pay for its employees.

3.2. Convict Labor

3.2.1. General

Federal laws prohibit the employment of convict labor in contracts entered into by certain

government departments or agencies. These laws are applied herein by policy in the manner and 

extent stated below.

3.2.2. Requirement

All contracts shall contain a Convict Labor clause. This clause provides that the contractor 

agrees not to employ any person undergoing sentence of imprisonment that has been imposed by 

any federal, state or U.S. government territory court.

3.2.3. Applicability

(a) The requirement does not prohibit employing persons who:

 (1) Are federal prisoners authorized to work at paid employment

 (2) Are on parole or probation

 (3) Have been pardoned
AOC Order 34-1 Contracting Manual, July 14, 2022 50

(b) The requirement does not apply to a contract:

(1) Subject to the provisions of the Walsh-Healey Public Contracts Act which contains its own

provisions relating to the use of convict labor

 (2) For supplies and services from Federal Prison Industries, Inc.

 (3) For finished supplies manufactured in a state prison and that could be secured in the open 

market

3.3. Walsh-Healey Public Contracts Act

3.3.1. Statutory Requirements

All contracts subject to the Walsh-Healey Public Contracts Act for manufacturing or furnishing 

materials, supplies, articles and equipment (referred to in this section as supplies) in any amount 

exceeding $15,000, shall include or incorporate by reference the stipulations required pertaining 

to such matters as minimum wages, maximum hours, child labor, convict labor, and safe and 

sanitary working conditions. COs shall insert the appropriate clause shown in the version of the 

Matrix Checklist in effect at the time of solicitation.

3.3.2. Exemptions

(a) Statutory Exemptions. The act does not apply to purchasing supplies that may usually be 

bought in the open market.

(b) Regulatory Exemptions. Contracts for the following acquisitions are fully exempt from the 

act:

 (1) Supplies manufactured outside the United States, Puerto Rico or the U.S. Virgin Islands

 (2) Purchases against the account of a defaulting contractor where the stipulations of the act 

were not included in the defaulted contract

 (3) Newspapers, magazines or periodicals

 (4) Public utility services including electricity, water, steam and gas

(c) The Architect of the Capitol may request an exemption from the Secretary of Labor for 

specific contracts or classes of contracts from the inclusion or application of one or more of the 

act’s stipulations. The request must include a finding by the Architect the Capitol that conducting 

government business will be seriously impaired unless the exemption is granted. Requests for 

exemption that relate solely to safety and health standards shall be transmitted to the Assistant 

Secretary for Occupational Safety and Health, U.S. Department of Labor, Washington, DC 

20210. All other requests shall be transmitted to the Administrator of the Wage and Hour 

Division, U.S. Department of Labor, Washington, DC 20210.

3.3.3. Rulings and Interpretations of the Act

The Secretary of Labor has issued rulings and interpretations concerning the administration of 

the act. The substance of certain rulings and interpretations is as follows:

(a) If a contract for $15,000 or less is subsequently modified to exceed $15,000, the contract 

becomes subject to the act for work performed after the date of the modification.

(b) If a contract for more than $15,000 is subsequently modified by mutual agreement to $15,000 
AOC Order 34-1 Contracting Manual, July 14, 2022 51

or less, the contract is not subject to the act for work performed after the date of the modification.

(c) If a contract awarded to a prime contractor contains a provision whereby the prime contractor 

is made an agent of the government, the prime contractor is required to include the stipulations 

of the act in contracts in excess of $15,000 awarded for and on behalf of the government for 

construction supplies.

(d) If a contract subject to the act is awarded to a contractor operating government-owned 

facilities, the stipulations of the act affect the employees of that contractor the same as 

employees of contractors operating privately owned facilities.

(e) IDCs, including basic ordering agreements and BPAs, are subject to the act unless it can be 

determined in advance that the aggregate amount of all orders estimated to be placed thereunder 

for one year after the effective date of the agreement will not exceed $15,000. A determination 

shall be made annually thereafter if the contract or agreement is extended, and the contract or 

agreement modified if necessary.

3.3.4. Procedures

(a) Award. When a contract subject to the act is awarded, the CO, in accordance with regulations 

or instructions issued by the Secretary of Labor, shall furnish to the contractor DOL publication 

WH–1313, Notice to Employees Working on Government Contracts.

(b) Breach of Stipulation. In the event of a violation of a stipulation required under the act, the 

CO shall notify the appropriate regional office of the DOL, Wage and Hour Division, and furnish 

any information available.

3.4. Service Contract Labor Standards

3.4.1. General

(a) Service Contract Labor Standards (formally the Service Contract Act [SCA]) apply to every 

government contract where the principal purpose is to furnish services in the United States using

service employees. Contractors and subcontractors performing on such federal contracts must 

comply with minimum wage and safety and health standards, and must maintain certain records, 

unless a specific exemption applies.

(b) Every service employee performing any of the government contract work under a service 

contract in excess of $2,500 must be paid not less than the monetary wages, and must be 

furnished fringe benefits, which the Secretary of Labor has determined to be prevailing in the 

locality for the classification in which the employee is working or the wage rates and fringe 

benefits (including any accrued or prospective wage rates and fringe benefits) contained in a 

predecessor contractor’s collective bargaining agreement. The wage rates and fringe benefits 

required are specified in the wage determination included in the contract. If no wage 

determination has been made applicable to the contract, employees performing work under the 

contract must be paid not less than the federal minimum wage provided in section 6(a)(1) of the 

Fair Labor Standards Act.
AOC Order 34-1 Contracting Manual, July 14, 2022 52

(c) Service contracts that do not exceed $2,500 are not subject to wage and fringe benefit 

determinations or to the safety and health requirements of the statute. However, the statute does 

require that employees performing work on such contracts be paid not less than the above 

minimum wage rate provided by section 6(a)(1) of the Fair Labor Standards Act.

(d) All provisions of the statute, except the safety and health requirements, are administered by 

the DOL Wage and Hour Division.

(e) Questions regarding wage determinations and how they are established may be directed to the 

DOL.

(f) Questions regarding a contractor’s compliance with the wage determination applicable to a 

particular contract should be directed to the appropriate regional office of the DOL, Wage and 

Hour Division.

3.4.2. Procedure

When the CO has reason to believe that a contract will be subject to the act, the CO shall obtain 

the appropriate wage determination from the DOL website (www.dol.gov). In cases where it is 

not clear whether the contract is subject to the act, the CO shall consult with the DOL or OGC as 

needed. COs shall insert the appropriate clause shown in the version of the Matrix Checklist in 

effect at the time of solicitation in all service contracts (including A/E).

3.5. Contract Work Hours and Safety Standards Act 

3.5.1. Requirements 

(a) The Contract Work Hours and Safety Standards Act provides that wages for every laborer 

and mechanic be computed based on a standard workweek of 40 hours. Work in excess of the 

standard hours is permissible provided the employee is compensated at the rate of time and onehalf the regular wage in excess of the standard hours.

(b) The contractor is also liable for any wages it has failed to pay and for additional liquidated 

damages in the amount of $10 per day per employee who has not been paid the required 

overtime. These amounts may be withheld from any payments due the contractor from the AOC.

(c) COs shall insert the appropriate clause shown in the version of the Matrix Checklist in effect 

at the time of solicitation.

3.5.2. Applicability

The act applies to all types of contracts, which use mechanics or laborers, including apprentices, 

trainees, watchmen and guards, except:

(a) Contracts for transportation by land, air or water

(b) Contracts for the transmission of intelligence

(c) Contracts for materials usually bought in the open market
AOC Order 34-1 Contracting Manual, July 14, 2022 53

(d) Contracts subject to the provisions of the Walsh-Healey Public Contracts Act

(e) Contracts of $250,000 or less

3.6. Construction Wage Rate Requirements Statute

3.6.1. Overview

Consistent with the Construction Wage Rate Requirements statute (formerly, the Davis-Bacon 

Act [DBA]) the AOC incorporates into its construction contracts the requirement that 

government contracts in excess of $2,000 for construction, alteration or repair (including 

painting and decorating) of public buildings or public works within the United States, shall 

contain a clause that no laborer or mechanic employed directly on the site of the work shall 

receive less than the prevailing wage rates determined by the Secretary of Labor.

3.6.2. Wage Determinations

The DOL is responsible for issuing wage determinations reflecting prevailing wages, including 

fringe benefits. The wage determinations apply only to those laborers and mechanics employed 

by a contractor upon the work site including drivers who transport materials and equipment to or 

from the site. Determinations are issued for different types of construction, such as building, 

heavy, highway and residential (referred to as rate schedules), and apply only to the types of 

construction designated in the determination.

3.6.3. Types of Wage Determinations

(a) General Wage Determinations. 

 (1) A general wage determination contains prevailing wage rates for the types of construction 

designated in the determination, and is used in contracts performed within a specified 

geographical area. General wage determinations contain no expiration date and remain valid 

until modified, superseded or canceled by the DOL. Once incorporated in a contract, a 

general wage determination normally remains effective for the life of the contract, unless the 

CO exercises an option to extend the contract term. These determinations shall be used 

whenever possible. They are issued at the DOL’s discretion either upon receipt of an agency 

request or on the DOL’s initiative. 

(2) General wage determinations are published on sam.gov. General wage determinations are 

effective on the publication date of the wage determination or upon receipt of the wage 

determination by the contracting agency, whichever occurs first. Publication within the 

meaning of this section occurs on the first date the wage determination is published. COs 

may not use an archived wage determination in a contract action without obtaining prior 

approval from the DOL. To obtain prior approval, contact the DOL, Wage and Hour 

Division.

(b) Project Wage Determinations. A project wage determination is issued at the request of a 

contracting agency. It is used only when no general wage determination applies, and is effective 

for 180 calendar days from the date of the determination. However, if a determination expires 

before contract award, the agency may request an extension to the 180-day life of the 

determination. Once incorporated in a contract, a project wage determination normally remains 

effective for the life of the contract, unless the CO exercises an option to extend the contract 
AOC Order 34-1 Contracting Manual, July 14, 2022 54

term.

3.6.4. General Requirements

(a) The CO must incorporate only the appropriate wage determinations in solicitations and 

contracts and must designate the work to which each determination applies. The CO must not 

include project wage determinations in contracts or options other than those for which they are 

issued. When exercising an option to extend the contract term, the CO must select the most 

current wage determination(s) from the same schedule(s) as the wage determination(s) 

incorporated into the contract.

(b) If the wage determination is a general or project wage determination containing more than 

one rate schedule, the CO shall either include only the rate schedules that apply to the particular 

types of construction (building, heavy, highway, etc.) or include the entire wage determination 

and clearly indicate the parts of the work to which each rate schedule shall be applied. Inclusion 

by reference is impermissible.

(c) COs shall insert the applicable provisions and clauses found in the version of the Matrix 

Checklist in effect at the time of solicitation in contracts for construction in excess of $2,000

within the United States.

3.7. Enforcing Labor Standards

3.7.1. Policy

(a) COs are responsible for ensuring the full and impartial compliance with labor standards in the 

administration of construction contracts. 

(b) COs shall:

(1) Ensure that contractors and subcontractors are informed, before commencement of work, 

of their obligations under the labor standards clauses of the contract

(2) Conduct adequate payroll reviews, on-site inspections and employee interviews to 

determine compliance by the contractor and subcontractors, and promptly initiate 

corrective action when required

(3) Promptly investigate and dispose of complaints if the CO or COR believes that a

contractor or subcontractor is submitting false payroll documentation (e.g., based on

interviews of employees), this is possible fraud that must be immediately reported to the

OIG.

(c) Preconstruction Conferences. Before construction begins, the CO shall issue an explanatory 

letter and arrange the conference with the contractor promptly after award of the contract.

3.7.2. Apprentices and Trainees

(a) The CO shall review the contractor’s employment and payment records of apprentices and 

trainees to ensure enforcement of labor standards.

(b) If a contractor has classified employees as apprentices, trainees or helpers without complying 

with the contract, the CO shall reject the classification and require the contractor to pay the 
AOC Order 34-1 Contracting Manual, July 14, 2022 55

affected employees at the rates applicable to the classification of the work actually performed.

3.7.3. Subcontracts

In accordance with the contract requirements, the contractor and subcontractors at any tier are 

required to submit a fully executed, Statement and Acknowledgment, upon award of each 

subcontract. 

3.7.4. Payrolls and Statements

(a) In accordance with the contract requirements, the contractor must submit within seven 

calendar days after the regular payment date of the payroll week covered, for the contractor and 

each subcontractor, (1) copies of certified weekly payrolls applicable to the contract, and (2) 

certified weekly payroll statements of compliance. The contractor may use the DOL Form WH347, Payroll (For Contractor’s Optional Use), or a similar form that provides the same data and 

identical representation.

(b) The contracting agency shall retain payrolls and compliance statements for three years after 

contract completion and make them available when requested by the DOL at any time during 

that period. Submitted payrolls shall not be returned to a contractor or subcontractor for any 

reason, but copies may be furnished to the contractor or subcontractor who submitted them, or to 

a higher tier contractor or subcontractor.

(c) Disclosure of Payroll Records. Contractor payroll records in the government’s possession 

must be carefully protected from any public disclosure that is not required by law, since payroll 

records may contain Personal Identifiable Information in which the contractor’s employees have 

a privacy interest, as well as information in which the contractor may have a proprietary interest 

that the AOC may be obligated to protect.

3.7.5. Compliance Checking

(a) General. The CO or designee shall perform checks and investigations on all contracts 

covered by this subpart as may be necessary to ensure compliance with the labor standards 

requirements of the contract.

(b) Compliance Checks. Compliance checking includes the following activities:

 (1) Employee interviews to determine correctness of classifications, rates of pay, fringe benefits 

payments and hours worked (see Standard Form 1445)

 (2) On-site inspections to check type of work performed, number and classification of workers, 

and fulfillment of posting requirements 

(3) Payroll reviews to ensure that contractors’ and subcontractors’ payrolls have been submitted 

on time and are complete and in compliance with contract requirements and any statutory or 

regulatory requirements particular attention should be given to:

(i) Correctness of classifications and rates

(ii) Fringe benefits payments

(iii)Hours worked

(iv)Deductions

(v) Disproportionate employment ratios of laborers, apprentices or trainees to 

journeymen
AOC Order 34-1 Contracting Manual, July 14, 2022 56

 (4) Comparison of the information in this section with available data, including daily 

inspector’s report and daily construction, to ensure consistency

(c) Special Compliance Checks. Situations that may require special compliance checks include:

 (1) Inconsistencies, errors or omissions detected during compliance checks

 (2) Receipt of a complaint alleging violations if the complaint is not specific enough, the 

complainant shall be invited to submit additional information

3.7.6. Withholding From or Suspension of Contract Payments

(a) Withholding for Nonsubmission. If the contractor fails to submit copies of its or its 

subcontractors’ payrolls promptly, the CO shall withhold payment of an amount that the CO 

considers necessary to protect the AOC’s interest and the employees of the contractor or any 

subcontractor. The CO shall coordinate with the OCFO for the correct procedure and to ensure 

the reduction is appropriately made.

(b) Withholding Payments. If the CO believes a violation exists or upon request of the DOL, the 

CO must withhold from payments due the contractor an amount equal to the estimated wage 

underpayment and estimated liquidated damages under the Contract Work Hours and Safety 

Standards Act.

 (1) If the CO believes a violation exists or, upon request of the DOL, the CO must withhold 

funds from any current AOC contract with the same prime contractor.

(2) If a subsequent investigation confirms violations, the CO must adjust the withholding as 

necessary. However, if the DOL requested the withholding, the CO must not reduce or 

release the withholding without DOL’s written approval.

(3) Use withheld funds as provided in paragraph (d) of this section to satisfy assessed liquidated 

damages, and unless the contractor makes restitution, validated wage underpayments.

(c) Suspension of Contract Payments. If a contractor or subcontractor fails or refuses to comply 

with the labor standards clauses, the agency, upon its own action or upon DOL’s written request, 

must suspend any further payment, advance or guarantee of funds until the violations cease or 

until the agency has withheld sufficient funds to compensate employees for back wages and to 

cover any liquidated damages due.

(d) Disposition of Contract Payments Withheld or Suspended:

 (1) Forwarding wage underpayments to the AOC OCFO. Upon final administrative 

determination, if the contractor or subcontractor has not made restitution, the CO must 

forward Standard Form (SF) 1093, Schedule of Withholdings to the OCFO. Attach to the 

SF1093 a list with the name, social security number and last known address of each affected 

employee; the amount due each employee; employee claims if feasible; and a brief rationale 

for restitution. The CO must indicate if restitution was not made because the employee 

could not be located. The AOC may assist underpaid employees in preparation of their 

claims. The OCFO must submit the SF1093 with attached additional data and the funds 

withheld (by check) to the Comptroller General of the United States (Claims Section).

 (2) Returning Withheld Funds to Contractor. When funds withheld exceed the amount required 

to satisfy validated wage underpayments and assessed liquidated damages, the CO shall 

return the funds to the contractor. 
AOC Order 34-1 Contracting Manual, July 14, 2022 57

 (3) Limitation on Forwarding or Returning Funds. If the DOL requested the withholding or if 

the findings are disputed, the CO must not forward the funds to the Comptroller General, or 

return them to the contractor without approval by the DOL.

 (4) Liquidated Damages. Upon final administrative determination, the CO must coordinate with 

the OCFO as to the proper disposition of withheld funds.

3.7.7. Cooperation With the Department of Labor

(a) The AOC shall cooperate with DOL representatives in the inspection of records, interviews 

with workers and all other aspects of investigations undertaken by the DOL. When requested, the 

AOC shall furnish to the Secretary of Labor any available information on contractors, 

subcontractors, current and previous contracts, and the nature of the contract work. 

(b) If a DOL representative undertakes an investigation at a construction project, the CO shall 

inquire into the scope of the investigation and request to be notified immediately of any 

violations discovered under labor standards statutes.
AOC Order 34-1 Contracting Manual, July 14, 2022 58

CHAPTER IV. REQUIRED SOURCES AND SMALL BUSINESS PROGRAM

4.1. AbilityOne Program

(a) The Javits-Wagner-O’Day Act (JWOD) created a procurement program (AbilityOne) that 

uses the government’s purchasing power to create jobs and training opportunities for people 

who are blind or severely disabled. Under JWOD, it is mandatory for all federal agencies to 

purchase certain supplies and services from the AbilityOne Program. JWOD established a

committee to implement the AbilityOne Program. The committee is responsible for determining 

those supplies and services to be purchased by the government and establishes prices for these 

supplies and services.

(b) The AbilityOne Program is a required source for all AOC supply and services purchases

unless a written justification is provided in the contract file or the purchase is made from an 

existing AOC contract or BPA. Supplies and services available through the AbilityOne Program 

shall be purchased regardless of the dollar value of the procurement, including purchases made 

with an AOC purchase card.

(c) The committee maintains a Procurement List of the supplies and services required to be 

purchased by the government from the AbilityOne Program. The Procurement List is available 

at https://www.abilityone.gov. AbilityOne supplies and services can also be purchased from 

GSA supply catalogs, the GSA Advantage website, and the AbilityOne Supplies and Services 

Catalog.

4.2. Small Business Programs

4.2.1. Definitions

(a) Industry means all concerns primarily engaged in similar lines of activity, as listed and 

described in the North American Industry Classification System (NAICS) code manual.

(b) Small business concern means a concern, including its affiliates, that is independently owned 

and operated, not dominant in the field of operation in which it is bidding on government 

contracts and qualified as a small business under the criteria and size standards by the SBA.

(c) Small business set-aside means a procurement that limits the participation to small business 

concerns.

4.2.2. Relationship With the Small Business Administration (SBA)

The AOC shall:

(a) Apply the SBA’s definitions of small business concerns and use the SBA’s expertise in 

establishing size standards for AOC procurements

(b) Comply with the SBA’s size determinations, including accepting the SBA’s Office of 

Hearings and Appeals decisions and selection of a NAICS code when one is not selected or 

properly selected by the AOC

(c) Comply with the SBA’s decisions on protests concerning an offeror’s representation as a 
AOC Order 34-1 Contracting Manual, July 14, 2022 59

small business concern

(d) Accept the SBA’s determinations of responsibility of a small business under the Certificate of 

Competency program

(e) Comply with the SBA’s determination of the eligibility of concerns to participate in a small 

business set-aside

(f) Use the SBA’s class waivers and individual contract waivers under the non-manufacturer rule

4.2.3. Responsibilities

(a) The Chief SSMMD, or Associate Chief if one exists, is responsible for coordinating outreach 

activities to small businesses, program oversight of small business set-asides, providing training 

to the appropriate AOC staff, and developing reporting mechanisms for measuring the AOC’s

accomplishments in small business contracting awards. The Small Business Coordinator has the 

authority to approve or disapprove the use of other than small businesses for a specific 

requirement or class of requirements.

(b) COs and purchase cardholders are responsible for using small business set-asides in 

compliance with this section.

4.2.4. Policy

(a) All small purchases exceeding $10,000, but $250,000 or less shall be set-aside for small 

business concerns unless one of the exceptions below applies. However, purchases shall be 

directed to small business concerns for purchases of $10,000 or less to the maximum extent 

practicable.

(b) Small business set-asides are not applicable to:

(1) small purchases made to entities outside the United States and its territories

(2) transfers of funds or payments to other government agencies

(3) AOC IDCs

(4) federal agencies’ governmentwide indefinite-delivery contracts (GWAC)

(5) multi-agency contracts

(6) GSA FSS contract

(7) documented/executed IAAs or MOUs

(c) COs shall make reasonable efforts to identify and use small business concerns, including 

small disadvantaged businesses, women-owned small businesses, veteran-owned small 

businesses, HUBZone and service-disabled veteran-owned small businesses for all 

procurements, including those not using small business set-asides.

4.2.5. Small Business Subcontracting Plan

(a) All AOC contracts exceeding $650,000 for A/E services or $1,500,000 for construction that 

are awarded to other than small businesses shall include the appropriate clause shown in the 

version of the Matrix Checklist in effect at the time of solicitation.
AOC Order 34-1 Contracting Manual, July 14, 2022 60

(b) If a subcontracting plan is required, the award letter shall state that it must be submitted to the 

CO within a specified number of days following award of the contract.

(c) The CO shall provide a copy of any award letter that requires a subcontracting plan to the 

Small Business Coordinator.

(d) Upon receipt of any subcontracting plan, the CO shall review the document for compliance 

with the contract clause(s) noting any deficiencies, and then forward it to the Small Business 

Coordinator for review and final recommendations.

(e) Any deficiencies noted in the subcontracting plan shall be remedied by the contractor within 

10 calendar days following notification by the CO.

(f) The SF294, Subcontracting Report for Individual Contracts, is due in accordance with the 

terms of the contract and shall be submitted by the contractor to the CO. Upon receipt, the CO

shall review the document for compliance with the contract clause(s) noting any deficiencies, 

and then forward it to the Small Business Coordinator for review and final recommendations. 

Any deficiencies shall be remedied by the contractor within 10 calendar days following 

notification by the CO.

4.2.6. North American Industry Classification System (NAICS) Codes and Size Standards

(a) The NAICS is a system of codes assigned by the U.S. Department of Commerce (DOC) to 

each major service and supply industry in the United States. The SBA establishes small business 

size standards on an industry-by-industry basis using the NAICS codes assigned by DOC. Size 

standards are based on revenue or number of employees. The NAICS code determines which 

businesses are considered small businesses and are permitted to participate in a procurement 

using a small business set-aside.

 (1) The current NAICS code manual with descriptions of each industry is available at: North 

American Industry Classification System (NAICS).

 (2) The size standards assigned each NAICS code is available at: North American Industry 

Classification System (NAICS).

(b) All written RFQs for requirements exceeding the competition threshold and using small 

purchase procedures must specify a NAICS code and corresponding size standard. All COs 

obtaining quotations orally must provide a NAICS code if requested by the SBA or a vendor. For 

size standard purposes, a product or service is classified in only one industry whose definition 

best describes the principal nature of the product or service being acquired, usually the 

component that accounts for the greatest percentage of contract value. Procurements for supplies 

must be classified under the appropriate manufacturing NAICS code.

(c) Questions regarding the selection of NAICS codes in AOC procurements should be referred 

to the Small Business Coordinator.

(d) The CO’s determination of the applicable NAICS code is final unless appealed to the SBA.
AOC Order 34-1 Contracting Manual, July 14, 2022 61

4.2.7. Nonmanufacturer Rule

(a) For a contract at or below the Small Purchase Threshold, a small business concern may 

provide the end item of any firm. For a contract exceeding the Small Purchase Threshold, a small 

business concern that provides an end item it did not manufacture, process, or produce, shall:

(1) Provide an end item that a small business has manufactured, processed or produced in the 

United States or its outlying areas

(2) Be primarily engaged in the retail or wholesale trade and normally sell the type of item 

being supplied

(3) Take ownership or possession of the item(s) with its personnel, equipment or facilities in a 

manner consistent with industry practice; for example, providing storage, transportation or 

delivery

(b) This section does not apply to construction or service contracts.

(c) AOC small purchases are subject to the nonmanufacturer rule. The rule permits small 

business concerns to provide any domestic firm’s product.

(d) The SBA may issue a waiver for a class of products using the NAICS code for an industry.

 (1) Current class nonmanufacturer rule waivers may be found on the SBA website. If using an 

existing class nonmanufacturer rule waiver, the CO must place a copy of the list of approved 

nonmanufacturer waivers in the contract file.

 (2) Waivers for a class of products may be requested by the Small Business Coordinator.

(e) An individual nonmanufacturer waiver can be requested for a specific procurement. To 

request a waiver, the CO must submit the following information to the Small Business 

Coordinator:

 (1) A definitive statement of the specific item to be waived and justification

 (2) The contract number, NAICS code, dollar amount of the procurement and a brief statement 

of the procurement history

 (3) A determination by the CO that there are no known small businesses that provide or could 

be expected to provide the requested items; the determination must contain a narrative 

statement of the CO’s efforts to search for small business providers of the item

 (4) The Small Business Coordinator shall submit the required information to the SBA for a 

determination.

4.2.8. Locating Small Business Sources

(a) Requisitioners and COs are responsible for the market research and documentation necessary 

to locate small businesses for the AOC small business set-aside program, however, the CO is 

ultimately responsible for ensuring compliance with this task.

(b) AOC employees can use https://sam.gov to search for small businesses. AOC employees may 

utilize other available sources to locate small businesses for an AOC requirement; however, 

businesses identified by using other sources must meet the federal size standard for a small 

business.
AOC Order 34-1 Contracting Manual, July 14, 2022 62

4.2.9. Procedures for Small Business Set-Asides

(a) Small purchases exceeding $10,000 but $250,000 or less shall be automatically set aside for 

small business concerns unless either:

 (1) The requirement is a justified sole source procurement

 (2) Market research strongly indicates that there is not a reasonable expectation of obtaining 

offers from two or more responsible small business concerns that are competitive in terms of 

market prices, quality and delivery

 (3) The market research indicates that no small business concerns possess the requisite 

capabilities and

 (4) An AOC Form 1901, Small Business Program Waiver form has been approved

(b) Requisitioners and COs shall afford small business concerns the maximum practicable 

opportunity to participate in AOC procurements by structuring their requirements so that:

 (1) Delivery schedules are established that will encourage small business participation to the 

extent consistent with the AOC’s requirements

 (2) The maximum amount of time practicable for submitting offers is allowed

 (3) Procurement information is furnished to all small businesses that express an interest

(c) If a small business concern cannot be located for a requirement exceeding the competition 

threshold, the CO, or jurisdiction in accordance with CM § 7.1.4. RFQs less than $25,000, must 

complete AOC Form 1901, Small Business Program Waiver form, and submit it to the Small 

Business Coordinator for approval before soliciting competition or awarding to a sole source 

vendor. AOC form 1901 and related documentation shall be maintained with the procurement 

file.

 (1) Jurisdictions conducting solicitations in accordance with CM § 7.1.4. Requests for Quotes 

(RFQs) less than $25,000 shall follow all competition rules required by this CM.

(d) Small Business Coordinator Review.

 (1) If the Small Business Coordinator concurs with the findings that the procurement cannot use

a small business set-aside, the procurement can proceed with the soliciting of competition or 

awarding to the identified sole source vendor.

 (2) If the Small Business Coordinator does not concur, the reason(s) for nonconcurrence shall 

be provided in writing to the CO. The CO cannot proceed with the procurement when the 

Small Business Coordinator does not concur on the AOC Form 1901.

 (3) Disputes between the CO and the Small Business Coordinator shall be decided by the Chief 

SSMMD, or Associate Chief if one exists.

(e) Offers.

 (1) If the CO receives only one acceptable offer from a responsible small business concern in 

response to a small business set-aside, the CO must make an award to that small business 

concern. 

 (2) If the CO receives no acceptable offers from responsible small business concerns the setaside is automatically withdrawn. The requirement may be competed. Concurrence by the 

Small Business Coordinator is not required when no offers are received.

 (3) Offers received from concerns that do not qualify as small business concerns shall be 

considered nonresponsive and shall be rejected. However, before rejecting an offer 
AOC Order 34-1 Contracting Manual, July 14, 2022 63

otherwise eligible for award because of questions concerning the size representation, consult 

with the Small Business coordinator who will advise if SBA review is necessary.

4.2.10. Withdrawing a Small Business Set-Aside

(a) If, before award of an order involving a small business set-aside, the CO considers that award 

would be detrimental to the public interest (e.g., payment of more than a fair market price), the 

CO may request that the small business set-aside be withdrawn and the procurement solicited 

among all business types. However, the CO must submit AOC Form 1901, Small Business 

Program Waiver Form, to the Small Business Coordinator and include all relevant and pertinent 

information to support a withdrawal of the individual small business set-aside.

(b) If the Small Business Coordinator does not agree to a withdrawal, the matter shall be referred 

to the Chief SSMMD or their designee for resolution.

(c) All documentation relating to the withdrawal of a small business set-aside shall be maintained 

in the contract file.

4.2.11. Protesting a Small Business Representation

(a) To be eligible for award as a small business concern, a vendor must represent in good faith 

that it is a small business at the time of its certification and representation. The CO shall accept a 

vendor’s representation that it is a small business unless another vendor or interested party 

challenges the small business representation or the CO has reason to question the representation.

(b) Interested parties may protest the size status as represented by an offeror or request a formal 

size determination of an offeror. Formal size determination appeals shall be processed through

the SBA. COs must submit requests for formal size determinations to the Small Business 

Coordinator. The Small Business Coordinator is responsible for submission of the request for a 

formal size determination to the SBA.

(c) An offeror’s representation that it is a small business is not binding on the SBA. If an 

offeror’s small business status is challenged, the SBA will evaluate the status of the concern and 

make a determination as to whether the offeror is a small business. Offers received from 

concerns that do not qualify as small business concerns shall be considered nonresponsive and 

rejected by the AOC CO after receipt of an SBA determination on the size status.

(d) A CO may proceed with awarding a procurement after protest of a small business issue. 

However, the SBA must be notified of the intent to proceed prior to award of the order. The CO 

shall notify the Small Business Coordinator of the intent to proceed with award at least five 

workdays before award of the order. The Small Business Coordinator is responsible for notifying 

the SBA.

4.2.12. Recordkeeping and Reporting Requirements

(a) The size representation provided by vendors is contained in the FMS vendor database. Any 

discrepancies between socioeconomic data obtained from the contractor when compared to 

sam.gov must be reported to the Small Business Coordinator for resolution.
AOC Order 34-1 Contracting Manual, July 14, 2022 64

(b) COs shall comply with any data collection and reporting instructions necessary to measure 

the AOC’s small business accomplishments. In general, the methodologies used shall be 

automated to the fullest extent possible. The Small Business Coordinator has the authority and 

responsibility for issuing any data collection and reporting instructions.
AOC Order 34-1 Contracting Manual, July 14, 2022 65

CHAPTER V. CONTRACT FUNDING AND PAYMENTS

5.1. Funding Requirements

No obligation shall be created or authorized in excess of the funds available, or in advance of 

appropriations, unless otherwise authorized by law. Before executing any contract, the CO shall:

(a) Obtain written assurance from responsible fiscal authority that adequate funds are available 

or expressly condition the contract upon availability of funds in accordance with the Availability 

of Funds clause in the contract.

 (1) If the contract is fully funded, funds are obligated to cover the price of a fixed-price contract 

or the estimated cost and fee of a cost-reimbursement contract.

 (2) If the contract is incrementally funded, funds are obligated within the limits of appropriated 

funds. 

5.1.1. Contracts Conditioned Upon Availability of Funds

(a) Fiscal Year Contracts. The CO may initiate a contract action properly chargeable to funds of 

the new fiscal year before these funds are available, provided that the contract includes the 

appropriate clause shown in the version of the Matrix Checklist in effect at the time of 

solicitation. This authority may be used only for operation and maintenance and continuing 

services (e.g., rentals, utilities and supply items not financed by stock funds):

(1) Necessary for normal operations

(2) For which Congress previously had consistently appropriated funds, unless specific 

statutory authority exists permitting applicability to other requirements

(b) Indefinite-Quantity or Requirements Contracts. A one-year indefinite-quantity or 

requirements contract for services that is funded by annual appropriations may extend beyond 

the fiscal year in which it begins; provided that:

 (1) Any specified minimum quantities are certain to be ordered in the initial fiscal year

 (2) The contract includes the clause, Availability of Funds for the Next Fiscal Year

(c) Acceptance of Supplies or Services. The government shall not accept supplies or services 

under a contract conditioned upon the availability of funds until the CO has given the contractor 

notice, to be confirmed in writing, that funds are available.

5.1.2. Contracts Crossing Fiscal Years

(a) A contract that is funded by annual appropriations may not cross fiscal years, except in 

accordance with statutory authorization or when the contract calls for an end product that cannot 

feasibly be subdivided for separate performance in each fiscal year.

(b) The AOC may enter into a contract, exercise an option or place an order under a contract for 

severable services for a period that begins in one fiscal year and ends in the next fiscal year if the 

period of the contract awarded, option exercised or order placed does not exceed one year. This 

may include contracting for training requirements. Funds made available for a fiscal year may be 

obligated for the total amount of an action entered into under this authority.

5.1.3. Limitation of Cost or Funds

(a) When a contract is approaching the estimated cost of the contract or the limit of the funds 
AOC Order 34-1 Contracting Manual, July 14, 2022 66

allotted, the CO shall promptly obtain funding and programming information pertinent to the 

contract’s continuation and notify the contractor in writing that:

(1) Additional funds have been allotted or the estimated cost has been increased in a specified 

amount

 (2) The contract is not to be further funded and that the contractor should submit a proposal for 

an adjustment of fee, if any, based on the percentage of work completed in relation to the 

total work called for under the contract

 (3) The contract is to be terminated

 (4) The government is considering whether to allot additional funds or increase the estimated 

cost:

(i) The contractor is entitled by the contract terms to stop work when the funding or cost limit 

is reached

(ii) Any work beyond the funding or cost limit will be at the contractor’s risk

 (5) Upon learning that a partially funded contract will receive no further funds, the CO shall 

promptly give the contractor written notice of the decision not to provide funds

(b) Under a cost-reimbursement contract, the CO may issue a change order, a direction to replace 

or repair defective items or work, or a termination notice without immediately increasing the 

funds available. Since a contractor is not obligated to incur costs in excess of the estimated cost 

in the contract, the CO shall ensure availability of funds for directed actions. The CO may direct 

that any increase in the estimated cost or amount allotted to a contract be used for the sole 

purpose of funding termination or other specified expenses.

(c) Government personnel encouraging a contractor to continue work in the absence of funds will 

incur a violation that may result in civil or criminal penalties.

5.2. Payments

5.2.1. Considerations for Progress Payments

(a) Progress payments may be made on the basis of delivered supplies or accepted deliverables 

under service contracts and construction contracts. Progress payments may include:

 (1) Payments based on the percentage of completion accomplished

(2) Payments for partial deliveries accepted by the government

 (3) Partial payments for a contract termination proposal

(b) The CO shall include the clause or provision appropriate to contract type in all solicitations 

and an updated project schedule shall be included with the invoice for projects over $500,000.

5.2.2. Retainage

(a) Retainage is defined as a contractually agreed upon dollar amount or percentage of a 

payment(s) to be withheld from progress payments as security for the contractor’s performance 

over the life of a construction or A/E contract or until specific terms/milestones are met. 

Retainage stipulations and amounts are in the payment clauses contracts for construction and 

A/E services. Retainage provides the agency with leverage to ensure that all items of work are 

completed satisfactorily. Throughout the contract, payments are processed and amounts are 

retained (withheld) from each payment. The payment terms do permit some discretion regarding 
AOC Order 34-1 Contracting Manual, July 14, 2022 67

release of retainage and may permit the CO, with input from the COR to release the entire 

retained amount or a portion of the retained amount. However, retainage cannot be increased or 

decreased by the CO without written notification to the contractor on the reason for increasing or 

decreasing the amount of retainage.

(b) Construction Contract Retainage.

 (1) Payment terms require progress payments withhold 10 percent of the requested payment as 

retainage until final completion and acceptance of all work required by the contract.

However, if the CO, at any time after 50 percent of the work has been completed, finds that 

satisfactory progress is being made, he may authorize any of the remaining partial payments 

to be made in full. When this is the case, COs shall follow the procedures established by the 

OCFO.

 (2) If the contractor has not made satisfactory progress, the CO may retain a maximum of 10 

percent of the payment amount until satisfactory progress is made. 

 (3) When the work is substantially complete, the CO if they consider the amount to be retained 

to be in excess of the amount adequate for the protection of the government, at their

discretion, may release to the contractor all or a portion of such excess amount.

 (4) If applicable and authorized by the contract, payment may be made without retention for 

completion and acceptance of each separate phase, building or other division of the contract, 

on which the price is stated separately in the contract.

 (5) Upon completion and acceptance of the contract work, payment shall be made for the 

completed work without retainage.

(6) AOC employees involved in approving/certifying payments shall ensure that the correct 

retainage is provided for in payments under construction contracts. When less than 10 

percent is retained, the AOC employee shall ensure CO approval is obtained and 

documented by following the procedures established by the OCFO.

(c) A/E Contract Retainage

(1) A/E contract payment terms provide for withholding up to 10 percent of each monthly

payment if the CO determines that such a retainage is necessary to protect the government’s 

interest and ensure satisfactory completion of the contract.

(2) The amount retained shall be determined based upon the contractor’s performance record 

under the contract. 

(3) When the work is substantially complete and final acceptance has been made by the CO, 

the contractor will be paid the unpaid balance of any money due for work complete, including 

all withheld amounts.

(4) AOC employees involved in approving/certifying payments shall ensure that the correct 

retainage is provided for in payments under A/E contracts. When less than 10 percent is 

retained, the AOC employee shall ensure CO approval is obtained and documented by 

following the procedures established by the OCFO.

(d) Process for Releasing Retainage.

(1) Generally, the contractor must request in writing to the CO that retainage be released

including the amount that the contractor is seeking to be released. 

 (2) The CO and the COR then review the contractor’s request to determine if it is reasonable in 

whole or in part. The following questions should be asked to determine if releasing 
AOC Order 34-1 Contracting Manual, July 14, 2022 68

retainage is appropriate:

(i) Does the release of retainage before substantial completion place the AOC at risk?

(ii) Does the release of retainage impair the AOC’s ability to or leverage in obtaining 

completion of the contract?

(iii) Were previous performance milestones achieved satisfactorily and on time?

(iv) Are there indications that the contractor may not finish the remaining work?

(v) If the project is substantially complete, is there adequate retainage to cover the value of 

any remaining items?

(vi) If deficient work exists, is there adequate retainage to cover the value of correcting this 

work?

 (3) If determined to be reasonable, the CO shall notify the contractor in writing. The release 

may be reflected on the contractor’s next invoice. The CO can notify the AOC OCFO via 

message with supporting documentation to accountingmyfax.gov that release of retainage is 

authorized by signing the payment request or sending the division a copy of the contractor 

notification.

5.3. Contract Debts

5.3.1. General

Contract debts arise in various ways. The following are some examples:

(a) Damages or excess costs related to defaults in performance

(b) Breach of contract obligations concerning progress payments or GFP

(c) Government expense of correcting defects

(d) Overpayments related to errors in quantity or billing or deficiencies in quality

5.3.2. Responsibilities and Cooperation Among AOC Officials

(a) To protect the AOC’s interests, COs, disbursing officials, auditors and others shall cooperate 

fully with each other to:

 (1) Discover promptly when a contract debt arises

 (2) Ascertain the correct amount of the debt

 (3) Act promptly and effectively to collect the debt

 (4) Administer deferment of collection agreements

 (5) Provide up-to-date information on the status of the debt

(b) For most kinds of contract debts, the CO, in coordination with the OCFO, has the primary 

responsibility for determining the amounts of and collecting contract debt.

5.3.3. Debt Determination and Collection

(a) If a contract debt arises, the CO, in coordination with other AOC officials, shall determine 

promptly whether debt is due the AOC and the amount. Any unwarranted delay may contribute 

to:

 (1) Loss of timely availability of the funds to the project for which the funds were initially 

provided
AOC Order 34-1 Contracting Manual, July 14, 2022 69

 (2) Increased difficulty in collecting the debt

 (3) Actual monetary loss to the AOC

(b) In determining the contract debt amount, the responsible official shall fairly consider both the 

government’s claim and contractor claims against the government. This determination does not 

constitute a settlement of such claims, nor is it a CO’s final decision.

(c) The AOC CFO is responsible for controlling records for each contract debt and procedures 

for tax credit, pricing agreement with refund, payment demand of contract debt, withholding and 

setoff, collection deferment, and interest charges and credits.

5.4. Assignment of Claims

5.4.1. General

The Assignment of Claims Act of 1940 (31 U.S.C. § 3727, 41 U.S.C. § 6305) permits 

contractors to assign claims against the government for monies due or to become due to a bank, 

trust company or other financing institution. The act also protects assignees from assuming the 

assignor’s liability and prevents the government from collecting on any such liability from the 

assignee.

5.4.2. Conditions Governing the Assignment of Claims

(a) The act permits the assignment of funds due under a contract provided:

(1) The contract provides for payment aggregating $1,000 or more

 (2) Payments are assigned to a bank, trust company or other financing institution, including 

federal lending agencies

(3) The contract does not forbid assignment

(b) An assignment may be made to only one party and shall cover all amounts payable under the 

contract, that have not already been paid. Any assignment may be made to one party as agent or 

trustee for two or more parties participating in the financing. In accordance with the statute, there 

shall be no further assignment unless expressly permitted by the contract.

5.4.3. Contract Clause

The CO shall include the Assignment of Claims clause in all contracts by reference.

5.4.4. Filing Notice of Assignment

The assignee must provide a written notice of the assignment and a copy of the assignment to the 

CO.

5.4.5. Procedures Upon Receipt of Notice of Assignment

(a) The CO will examine the notice of assignment, instrument of assignment and the contract 

involved to determine that the assignment is in proper form, has been properly executed, and that 

the contractor is empowered under the contract to make the assignment. If these conditions are 

not met, or if post-award payment processing has been initiated by the AOC OCFO, the CO will 

return the assignment documents to the assignee with an explanation of the objections to the 

proposed assignment.
AOC Order 34-1 Contracting Manual, July 14, 2022 70

(b) If the assignment conditions are met, the CO will indicate the assignment in the contract file

and modify the contract to reflect the assignment.

(c) The CO shall then forward the assignment documents to OGC for review. If OGC has a legal 

objection, the CO shall return all assignment documents to the assignee with an explanation of 

the legal objection. The CO shall then forward the assignment papers to the AOC OCFO.

5.4.6. Further Assignment and Reassignment

Contracts which permit assignment of claims also permit the further assignment and 

reassignment by the assignee to another bank, trust company or other financing institution under 

the Assignment of Claims clause. Copies of a written notice of further assignment and 

reassignment and the copy of the instrument shall be processed in the same manner as the initial 

notice of assignment.

5.4.7. Transfer of Businesses and Corporate Mergers

Transfers of an entire business, corporate mergers and assignments by the operation of law, each 

of which may affect the assignment of claims under a contract, are not governed by the 

Assignment of Claims Act of 1940. Assignment notices of claims under the contract made by the 

transferee should not be acknowledged until the CO obtains a certified copy of the document 

evidencing the transfer.
AOC Order 34-1 Contracting Manual, July 14, 2022 71

CHAPTER VI. PUBLICIZING CONTRACT ACTIONS

6.1. Policy

Contract Opportunities (within sam.gov) is the governmentwide system for publicizing federal 

procurement opportunities, COs publicize procurements to:

(a) Increase competition

(b) Broaden industry participation in meeting government requirements

(c) Assist small business concerns in obtaining contracts and subcontracts

6.2. Procedures

(a) Pre-Solicitation Notices/Synopses shall be published for all full and open procurement 

actions for supplies, services, professional services, construction and A/E services expected to 

exceed $250,000. For A/E services, publication is based on the total fee, including phases and 

options. The CO shall upload/attach all pertinent documents necessary for the proper 

advertisement of the procurement opportunity, except construction drawings for security reasons.

Construction solicitations shall state the magnitude of the requirement including physical 

characteristics and estimated price range at the CO’s discretion.

(b) Solicitations shall be advertised 15 calendar days following synopses.

(c) Notice of award shall be published within five days after award when the contract amount 

exceeds the Small Purchase Threshold and the contract action was synopsized.

(d) COs may allow vendors to add themselves to the interested vendors list for an opportunity 

and review other interested vendors who have expressed interest in the opportunity. This is 

particularly helpful to small businesses that wish to subcontract for construction projects.

(e) Archiving timelines shall be determined by the CO.

6.3. Exceptions

COs are not required to publicize procurement actions when:

(a) The amount does not exceed $250,000

(b) Public exigency requires immediate delivery or performance

(c) Only one source is available and is supported by a sole source justification

(d) The services, equipment or construction are for security purposes

(e) The acquisition is made from an IDIQ contract, governmentwide contract (e.g., utilities 

areawide vehicles and contracts from other agencies) or GSA FSS contract
AOC Order 34-1 Contracting Manual, July 14, 2022 72

CHAPTER VII. SMALL PURCHASES

7.1. General Principles

This chapter contains simplified acquisition procedures for award of competitive procurements 

not to exceed $250,000 – the Small Purchase Threshold.

7.1.1. Competition

The AOC promotes competition to the maximum extent practicable to obtain supplies and 

services from the source whose offer is the most advantageous to the government.

(a) The AOC will not:

 (1) Solicit quotations based on personal preference

 (2) Restrict solicitations to brand name products

(b) If using simplified acquisition procedures and not publishing a synopsis on Contract 

Opportunities, maximum practicable competition can be obtained by soliciting at least three 

quotations or offers from local sources. 

(c) Competition is not required for:

 (1) Purchases of $10,000 or less

(2) Purchases that exceed $10,000 with a valid sole source justification

(d) AOC personnel shall not split a requirement exceeding $10,000 into multiple requisitions to 

circumvent competition requirements.

(e) Purchases under $10,000 must be determined to have a fair and reasonable price, and it is 

recommended that the same or similar requirements purchased over a period of time be equally 

distributed among qualified suppliers to the maximum extent practical.

(f) The Request for Small Purchase Form shall be used to document the identification of an 

agency need and management’s approval of its purchase.

7.1.2. Basis for Award

When issuing solicitations, the basis for award shall be stated in the solicitation (price alone or 

price and other factors, e.g., past performance and quality). Generally, low price will be the 

determining factor, however, other acquisition strategies may be used (e.g., best value).

7.1.3. Sources

When issuing solicitations, COs must limit the contract opportunity to small businesses in 

accordance with section 4.2, Small Business Programs. 

7.1.4. Solicitation of RFQs Less Than 25,000

Jurisdictions/organizations have the authority to issue RFQs provided they follow all 

competition rules required by this CM and:

(a) The RFQ is in writing and sent to at least three vendors
AOC Order 34-1 Contracting Manual, July 14, 2022 73

(b) The RFQ documentation complies with the requirements of this chapter, contains the 

appropriate NAICS code and business size standard, and includes all required small purchase 

terms and conditions

(c) Jurisdiction personnel coordinated with their assigned CO for guidance and assistance in 

preparing the RFQ

(d) The RFQ does not exceed $25,000 for supplies; $2,500 for services; or $2,000 for 

construction

7.1.5. Simplified Acquisition Procedures

(a) For supplies or services, the solicitation of at least three qualified, independently competing 

vendors whose principal line of business is in the industry in which the supplies or services are 

normally found.

(b) If practicable, one or more source(s) not included in previous procurements for the same or

similar supplies or services should be included in the RFQ source list.

(c) Written RFQs are mandatory for procurements expected to exceed $10,000.

(d) Requisitions for services shall also include:

(1) Certification of Nonpersonal Services

(2) IGE

(3) SOW

(e) A copy of all written quotes shall be maintained in the jurisdiction’s file for that requisition. 

The RFQ and resulting quotes shall be forwarded to the CO as part of the requisition package.

(f) All procurements over $10,000 require a written determination by the CO, or a cardholder on 

a purchase card transaction, that the prices submitted by the vendor selected for award are fair 

and reasonable.

(g) The table below provides requirements that must be included in RFQs and requisitions. 
AOC Order 34-1 Contracting Manual, July 14, 2022 74

REFERENCE TABLE FOR SMALL PURCHASES

Activity Required in 

RFQ

Required in 

Requisition

The identification of the account(s) to which the purchase is 

chargeable

No Yes

The electronic approval or signature of the 

jurisdiction/organization’s official authorized by the Architect

of the Capitol and budget policies and procedures to commit 

and certify that account

No Yes

A reasonable delivery date that allows time for AOC order 

processing that includes starting and ending dates and any 

applicable milestones to be achieved during performance

Yes Yes

An itemized list of the supplies or services required, including a 

complete and accurate description of the supplies or services, 

the quantity of each item or service, and the unit to be used for 

pricing, e.g., each, box, case, hour, etc.

Yes Yes

The location where the supplies are to be delivered or the 

services are to be performed

Yes Yes

A SOW, plans and/or specifications, as applicable Yes Yes

For noncompetitive procurements exceeding $10,000, a sole 

source justification certified and signed by the 

jurisdiction/organization’s official authorized by the Architect

of the Capitol and budget policies and procedures to commit 

and certify that account

No Yes

For procurements exceeding $10,000 but $25,000 or less, all 

vendor quotations received by the jurisdiction/organization

No Yes

For supplies, an RFI on the vendor’s normal shipping terms, 

i.e., F.O.B. origin or F.O.B. destination, and if 

shipping/handling costs can be charged separately, an actual 

cost or best estimate of the shipping/handling charges

Yes Yes

For supplies, inclusion of the Buy American clause Yes No

For construction exceeding $2,000, a statement on the 

applicability of the Construction Wage Rate Requirements 

statute and any required wage determinations

Yes Yes

For services exceeding $2,500 (excluding construction and 

professional services), a statement on the applicability of the 

Service Contract Labor Standards and any required wage 

determinations

Yes Yes

For construction exceeding $25,000, a requirement for

payment, and performance bonds

Yes Yes

For construction exceeding $50,000, the liquidated damages in 

the amounts as required by statute

Yes Yes
AOC Order 34-1 Contracting Manual, July 14, 2022 75

If the supplies or services are on an existing FSS contract or 

other IDC awarded by an agency other than the AOC, the 

vendor’s contract price, terms, conditions and contract number

Yes Yes

AOC security procedures for supplies and/or individuals. Yes Yes

AOC warranty provisions required and/or offered by the vendor Yes Yes

If trade-in of existing equipment is involved, provide a 

description of the existing equipment and a request for any 

trade-in value offered by the vendor

Yes Yes

If travel by vendor employees is required, a notice that Federal 

Travel Regulations apply to travel charges and a requirement 

for the vendor to specify the travel charges, including the 

number of people and days

Yes Yes

7.2. Transportation

7.2.1. F.O.B. Destination

All transportation expenses incurred in the delivery of the finished product shall be borne by the 

contractor. F.O.B. Destination shall be used to the maximum extent on all contracts and POs to 

minimize risk of loss to the AOC.

7.2.2. Delivery Vehicle Instructions

Delivery Vehicle Inspection Requirements are required for quotes, solicitations and resulting 

POs, DOs and contracts when the SOW or specifications require contractor delivery of 

equipment or materials to the job site or point of destination.

7.3. Purchase Card Program

7.3.1. Program Objectives

It is AOC policy that a purchase card shall be used for all small purchases below the 

competition threshold except when the particular vendor supplying the supplies or services does 

not accept government purchase cards. The purchase card can also be used as a payment method 

specified by the contract terms. All AOC jurisdictions, and all other AOC organizational 

divisions, shall ensure a staff member under their supervision uses a government purchase card 

to conduct purchases under the AOC competition threshold. Purchase cards provide AOC 

personnel a streamlined method of ordering and paying for supplies and services. Additional 

objectives are to reduce administrative costs, avoid unnecessary burdens for ordering activities 

and contractors, and promote efficiency.

7.3.2. Responsibilities 

(a) The Chief, SSMMD, is the APM and is authorized to delegate the authority to use the 

government purchase card and incur obligations under AOC appropriations. The APM is 

responsible for the AOC’s purchase card program, including purchase cards, travel cards and 

fleet cards. The APM has the authority to approve card issuance and cancellation, changes to 

card limits and Merchant Category Code (MCC) groupings, and to delegate authority to 

administer the program to the Agency Program Coordinator(s) (APC).
AOC Order 34-1 Contracting Manual, July 14, 2022 76

(b) The APC is responsible for the day-to-day purchase card program management and is the 

agency’s primary point of contact. The APC is also responsible for implementing policies and 

procedures for the purchase card program. This position is located in SSMMD. The APC 

maintains all forms and documents necessary to manage the purchase card program.

(c) The Approving Official (AO) is responsible for reviewing the cardholder’s monthly 

statement for accuracy and appropriateness of purchase and ensuring that:

 (1) Purchase card transactions meet the legal requirements for authorized purchases

 (2) Adequate documentation is available for individual transactions

 (3) Documents for payment are complete and accurate

 (4) Appropriate action is taken to prevent two or more payments for the same transaction

 (5) Dispute procedures are properly implemented when transactions are questioned

 (6) The cardholder reconciles the statement within the time frame established by the OCFO

(d) The cardholder is an AOC employee who is issued a purchase card. The cardholder is 

responsible for purchasing supplies and services with the card in accordance with applicable 

laws and regulations, including AOC policies and procedures regarding authorized small 

purchases, recordkeeping and reconciling and paying of the statement of account. All purchase 

card transactions over the competition threshold require a written determination by the 

cardholder that the price submitted by the vendor selected for award is fair and reasonable. A 

cardholder’s authority terminates upon the employee’s separation from the agency or 

cancellation of the card by the APM, or their designee.

7.3.3. Controls

(a) Cards. Each card will have monetary limits on both individual and monthly purchases. 

Transactions that exceed either of these limits will automatically reject the attempted purchase. 

Additional controls may be included as needed or offered by the bank.

(b) Merchant Category Codes (MCC). The bank assigns each vendor an MCC that represents the 

vendor’s general or specific industry. The APC develops MCC groups that are appropriate for 

the cardholder’s use to limit the types of merchants a cardholder may properly use.

(c) Training. Each cardholder and the AO must complete required training before being issued a 

card. The APM may waive training requirements for six months during which documentation

indicating the fulfillment of the required training can be provided or the card will be canceled, 

however, the APM does not have the authority to waive the appropriations law training required 

by the AOC CFO. Every five years the cardholder/AO is required to take refresher training in 

appropriations law. Required training is indicated on the form used to apply for a government 

purchase card.

(d) Organizations/jurisdictions must not have only one individual conduct the purchase card 

activities (requesting, ordering, receiving, reconciliation of monthly statement and approving of

monthly statement) to ensure that the card is used for legitimate AOC purchases. At a minimum, 

the cardholder may not make the purchase request or review/sign the statement. The purchase 

requestor or the AO must sign and date the receiving documentation and keep it in the purchase 

card file.
AOC Order 34-1 Contracting Manual, July 14, 2022 77

(e) Conduct of Cardholders. Conduct of the cardholders shall be governed by AOC Standards of 

Conduct and Government Ethics. Cardholders are prohibited from soliciting or accepting gifts or 

anything of value from a nongovernmental entity that does business or is seeking to do business 

with the AOC.

7.3.4. Card Security

(a) Safeguarding cards. Cardholders must safeguard their cards and account numbers and never 

allow anyone else to use them. When not in use, cards and other documents containing the 

purchase card number must be secured in a secure area with access limited to the cardholder and 

AO.

(b) Lost or Stolen Cards. If a card is lost or stolen, the cardholder must immediately notify the 

bank and the APC so the card can be canceled. The bank will mail a new card with a new 

account number within two business days of the reported loss or theft. If a card is subsequently 

found, the cardholder shall return it to the APC for destruction.

(c) Separation of Cardholder or Cancellation of the Card. If the cardholder leaves the agency or 

changes to a position that does not require a card, the cardholder must surrender the card to the 

APC for destruction. The cardholder’s AO is ultimately responsible for notifying the APC that 

the cardholder is leaving the agency or changing to a position that does not require a card. 

Notification must be made before the cardholder’s departure or change of position.

(d) Card Changes. To change the cardholder information, e.g., location, authorization limits, 

etc., in the bank’s master file, the APC shall transmit an account maintenance change to the 

bank. 

7.3.5. Card Issuance

(a) To request a purchase card for an employee, supervisors shall complete and submit AOC 

Form 3413-01, Application for a Government Purchase Card, to the APM. The supervisor may 

suggest both single and monthly limits; however, the APM may change and approve different 

limits than those requested. The form must be accompanied by documentation of the required 

training. If approved by the APM, the APC will request a card from the bank. Purchase cards 

will not be issued to temporary employees or employees that are on detail.

(b) Upon receipt of the card from the bank, the APC will notify the prospective cardholder of 

arrival of the card and provide the Architect of the Capitol Certification and Issuance of a

Purchase Card form. The prospective cardholder then must arrange for training and orientation 

with the Financial Systems Division, followed by procurement purchase card training by the 

APC. Upon completion of both training sessions, the prospective cardholder will be issued the 

purchase card. The cardholder is responsible for activating the card after issuance.

7.3.6. Using the Government Purchase Card

(a) The purchase card may be used, within specific limitations, to procure supplies and services 

needed in the day-to-day operation of the organization, provided the cardholder has the authority 

and funding. Purchase card transactions must be distributed equitably among qualified suppliers. 
AOC Order 34-1 Contracting Manual, July 14, 2022 78

The purchase card may be used as payment for procurement of over-the-counter goods or by a 

telephone order. When using a purchase card, the cardholder must inform the merchant that it is 

for official U.S. government purposes and, therefore, not subject to state or local taxes. If the 

merchant refuses to waive the state or local tax, the cardholder may place the order and include 

the state or local tax.

(b) All purchase card procurements must first have a written and signed Request for Small 

Purchase Form submitted from the employee requiring the supplies or services. Additionally, the 

order must be entered and approved in FMS prior to placing the order for each purchase. 

Cardholders are also required to enter the vendor ID, AOC part numbers for those items being 

purchased for inventory, or a short description for those items not being inventoried.

(c) The jurisdiction that uses a purchase card is responsible for performing the receiving 

function for those supplies and/or services ordered. If the shipping destination is different than 

the jurisdiction’s office location, an official at the destination office shall confirm receipt in 

writing to the jurisdiction. All steps from requesting the purchase card transaction through 

payment authorization are the responsibility of the cardholder/organization. In addition, the 

requestor or the AO must sign and date the receiving documentation and keep it in the purchase 

card file.

(d) Cardholders must solicit prompt payment discounts whenever available, as vendors normally 

receive payment from the bank within three days of the date the purchase card transaction is 

processed by the vendor.

(e) All items must be readily available. Back ordering is prohibited. The vendor must be able to 

provide the required supplies or services within 30 calendar days from the date of the order.

7.3.7. Unauthorized Card Use

(a) The following are unauthorized uses of the card:

(1) Cash advances, money orders or travelers checks

(2) Splitting requirements into several purchases to avoid the cardholder’s delegated single 

transaction purchase card limit or procurement regulations, policies or laws

(3) Purchases for personal use (to include food and/or lodging except as provided in this 

manual)

(4) IT equipment and software, unless delegated authority by ITD

(5) Longterm (exceeding one month) motor vehicle lease/rental

(6) Lease/rental of office equipment

(7) Furniture and furnishings, except for:

(i) furniture purchases in accordance with AOC policy regarding Reasonable 

Accommodation in Employment Policy and Procedures

(ii) those jurisdictions with funding authority

(8) Telecommunications services and equipment, unless specifically authorized.

(9) Construction over $2,000 or services over $2,500

(10) Use of the government purchase card for proof of identity when making nongovernment 

purchases

(11) Long-term (exceeding one month) equipment lease/rental, including construction 
AOC Order 34-1 Contracting Manual, July 14, 2022 79

equipment and storage trailers

(12) Repair of leased GSA vehicles

(13) Utilization of store credit for personal use; all use of store credit requests must be 

submitted to the Chief, SSMMD, for approval; documentation will be required that 

ensures the store credit was utilized for the benefit of the AOC

(14) Charges to any U.S. Supreme Court account, except those cardholders that have specific 

authority

(15) Purchase card transactions with contractors/vendors having delinquent federal debt

when the government purchase card is a method of payment authorized under an 

existing AOC contract

(b) Capitol Police Board Declaration of Emergency. During an emergency, personal use items to 

include food and lodging may be authorized for purchase (normally using a purchase card). This 

occurs only after the Capitol Police Board declares an emergency and the Architect of the 

Capitol, or their designee, issues an agency authorization to purchase food and/or lodging for 

AOC emergency response efforts.

(c) Penalties for Unauthorized Card Use. Indicators of personal use will be immediately reported 

to the OIG. In the event of an unauthorized or inappropriate purchase or failure to follow this 

policy, the APM has the authority to cancel the card. The cardholder may also be personally 

liable for any cost resulting from a violation of these policies and procedures.

7.3.8. Disputes

Disputes regarding inappropriate charges, non-receipt of items, etc., shall be processed in 

accordance with the bank’s disputes procedures. Cardholders shall notify the APC if the bank is 

not complying with the established disputes procedures.

7.3.9. Reconciliation of Statement

(a) Cardholders are responsible for downloading their monthly statements from the bank website 

and reconciling each statement of account. The cardholder shall retain all receipts and other 

transaction documentation to facilitate reconciliation. If documentation is not available, the 

cardholder shall annotate the statement of account or invoice, recording all pertinent information. 

Additionally, the cardholder and the AO shall review and ensure that all transactions on the 

statement of account or invoice are appropriate. The cardholder and AO shall sign and date the 

statement of account. 

(b) All reconciliation procedures and processes within FMS are determined by the AOC OCFO. 

Questions regarding the reconciliation process shall be directed to the OCFO. Cardholders are 

required to reconcile all statement activity by a date determined by the AOC OCFO.

7.3.10. Recordkeeping Requirements

(a) All purchase card orders and supporting documents shall be kept in file folders, filed by fiscal 

year, and placed in consecutive order by the purchase card order number. All required 

documentation for each order must be attached to the order. Files shall contain a copy of the 

Purchase Card Transaction/Order with all supporting documents, (i.e., sales receipts, packing 

slips, screen print of electronic purchases, training request form, training evaluation form, etc.) 
AOC Order 34-1 Contracting Manual, July 14, 2022 80

for review and auditing purposes. If the Purchase Card Transaction/Order is amended, all 

subsequent amendments to the order must be kept in the file.

(b) Statement of accounts signed by both the cardholder and the AO must be maintained for a 

period of time in accordance with the AOC Record Retention Policy.

(c) A checklist can be found on the AOC shared network and is titled Purchase Card Checklist. 

The checklist is not mandatory, but serves as a useful tool to the cardholder to ensure that the 

acquisition is in compliance with all applicable AOC policies and procedures. The checklist may 

be made mandatory for a particular jurisdiction/division if a less than satisfactory rating is 

received on the annual reviews conducted by APC.

7.3.11. Review Reports

A purchase card review will be performed by the APC on each cardholder’s files annually. 

Reviews will check for compliance with this manual, other applicable AOC policy and all

applicable laws.

(a) Purchase Card Review reports will be issued following the actual on-site review.

(b) Each review will be given one of the following ratings:

 (1) Satisfactory. The activity or individual typifies AOC policies or procedures. Some areas 

may be commendable and some improvements may be necessary.

 (2) Marginal. The activity or individual is minimally acceptable and deficient in application of 

AOC policy and procedures. A marginal rating is assigned when an activity or functional 

area is less than fully satisfactory but demonstrates the potential for self-improvement. This 

rating may be used if file documentation is lacking. A change in purchase card authority 

may be authorized at the APM’s discretion. A follow-up review 60 days after the report is 

issued is required after receipt of a marginal rating. If the follow-up review does not indicate 

that the deficiencies found in the initial review have been corrected, the rating will be 

downgraded to unsatisfactory. If the deficiencies have been corrected, the rating will be 

upgraded to satisfactory.

 (3) Unsatisfactory. The activity or individual is incapable or unwilling to apply AOC policies 

and procedures. A change in the purchase card authority must be part of any unsatisfactory 

review, which will be approved by the Chief, SSMMD. A follow-up review is required in 60

days and a second follow-up review in six months from the date of the issuance of the 

original report.

(i) Following any rating of unsatisfactory, within 30 days, the cardholder’s jurisdiction 

is required to submit a Corrective Action Plan (CAP) to the Chief, SSMMD, for 

review and approval. The CAP will address all issues found during the review and 

will provide a process of checks and balances to ensure that deficiencies do not 

occur again. Failure to submit an approved CAP will result in a reduction of 

purchase cards and/or buying authority for the jurisdiction. Once a CAP has been 

reviewed and approved by the Chief, SSMMD, it shall be distributed to all 

personnel involved in the purchase card process.

(c) Purchase cards are subject to OIG and auditor review. Copies of all files shall be provided to 

the OIG within a reasonable time.
AOC Order 34-1 Contracting Manual, July 14, 2022 81

7.4. Items Purchased for Resale in the Gift Shops

(a) Items intended for resale in AOC gift shops generally undergo a multi-layered review and 

approval process before they are purchased with curators from the House, Senate and the AOC; 

staff of the House and Senate oversight committees; librarians for the House and Senate and/or 

historians from the House, Senate and the AOC.

(b) The gift shop retail items must be made in the United States. The gift shop manager and staff 

must conduct market research to identify sources to include among other things: attending trade 

conferences if appropriate and approved, and reviewing trade magazines and vendor catalogs.

7.5. Blanket Purchase Agreements

7.5.1. General

A BPA is a simplified method of filling anticipated repetitive needs for supplies or services by 

establishing charge accounts with qualified sources of supply.

(a) BPAs should be established for use by the AOC jurisdictions responsible for providing 

supplies or services for its own operations or for other offices or functions.

(b) Using BPAs does not exempt the AOC from keeping obligations and expenditures within 

available funds.

7.5.2. Conditions for Use

(a) The following are circumstances under which COs may establish BPAs:

 (1) There are a variety of items in a broad class of supplies or services that are frequently 

purchased, but the exact items, quantities and delivery requirements are not known in

advance and may vary.

 (2) There is a need to provide commercial sources of supply or service for one or more offices 

or projects in a given area that do not have or need authority to purchase otherwise.

 (3) The use of this procedure would avoid writing numerous POs.

 (4) There is no existing requirements contract for the same supply or service that the 

contracting activity is required to use.

(b) After determining whether a BPA would be advantageous, COs shall:

 (1) Establish the parameters to limit purchases to individual items or commodity groups or 

classes

 (2) Consider suppliers whose past performance was dependable, who offer quality supplies or 

services at consistently low prices, and who have provided numerous purchases at or below 

the Small Purchase Threshold

(c) BPAs may be established with:

 (1) More than one supplier for the same type of supplies or services to provide maximum 

practicable competition

 (2) FSS contractors, if consistent with the applicable schedule contract terms
AOC Order 34-1 Contracting Manual, July 14, 2022 82

(d) BPAs should be prepared, after contacting suppliers to make the necessary arrangements for:

 (1) Securing maximum discounts

 (2) Documenting individual purchase transactions

 (3) Periodic billings

 (4) Incorporating other necessary details

(e) COs must comply with competition requirements when establishing BPAs.

(f) BPAs must be prepriced and include quantity discounts when applicable.

7.5.3. Preparing BPAs

The following statements shall be included in the BPA:

(a) The supplier shall furnish supplies or services, described in general terms, if and when 

requested by the CO during a specified period and within a stipulated aggregate amount, if any.

(b) The AOC is obligated only to the extent of authorized purchases actually made under the 

BPA.

(c) Specifies the dollar limitation for each purchase under the BPA.

(d) Shipments under the agreement, except those for newspapers, magazines or other periodicals, 

shall be accompanied by delivery tickets or sales slips that shall contain at a minimum the 

following information:

(1) Name of supplier

(2) BPA number

(3) Date of purchase

(4) Call number

(5) Itemized list of supplies or services furnished

(6) Quantity, unit price and extension of each item, less applicable discounts (unit price and 

extension need not be shown when incompatible with the use of automated systems, 

provided that the invoice is itemized to show this information)

(7) Date of delivery or shipment

(8) Invoice

7.5.4. Limitations on Use of BPAs

(a) Use BPAs only for purchases that are otherwise authorized by law or orders.

(b) The existence of a BPA does not justify purchasing from only one source.

(c) When there is more than one BPA for specific supplies or services, rotate BPA purchases

among suppliers.

7.5.5. BPA Reviews

The COs or their designated representatives shall:

(a) Review a sufficient sample of BPA files at least annually to ensure that authorized procedures 

are being followed and updated when necessary

(b) Maintain awareness of changes in market conditions, sources of supply and other pertinent 

factors that may warrant writing BPAs with different suppliers or modifying existing BPAs
AOC Order 34-1 Contracting Manual, July 14, 2022 83

CHAPTER VIII. TYPES OF CONTRACTS

8.1. Selecting Contract Types

8.1.1. General

(a) Multiple contract types are available to the AOC to provide needed flexibility in acquiring 

supplies and services. Contract types vary according to:

 (1) The degree and timing of the contractor’s responsibility for the performance costs

 (2) The amount and nature of the contractor’s profit incentive for achieving or exceeding 

specified standards or goals

 (3) Contract files shall include a determination by the CO to show why a particular contract 

type other than fixed priced was selected

(b) Negotiated contracts can be of any type that will promote the AOC’s interest. Generally, 

selecting a contract type is within the CO’s reasonable discretion. Some factors that a CO should 

consider in selecting the contract type are: 

 (1) Availability of price competition

 (2) The accuracy of price or cost analysis

 (3) The type and complexity of the requirement

 (4) Urgency of the requirement

 (5) Period of performance or length of production run

 (6) Contractor’s technical capability and financial responsibility

 (7) Adequacy of the contractor’s accounting system

 (8) Concurrent contracts

 (9) Extent and nature of proposed subcontracting

 (10) Acquisition history

(c) The cost-plus-a-percentage-of-cost contract shall not be used because it assures the contractor 

greater profits if it incurs greater costs, which does not provide an incentive to keep costs down.

A contract clause prohibiting cost-plus-a-percentage-of-cost contract shall be included in all 

prime contracts (including letter contracts) other than firm-fixed-price contracts.

8.1.2. Fixed-Price Contracts

(a) Firm-fixed-price contracts provide a set price (occasionally adjustable as described below) for 

the contractor that is not subject to adjustment based on the contractor’s cost experience on the 

contract. Firm-fixed-price contracts should be used when a fair and reasonable price can be 

established at the outset. This contract type is preferred because it encourages the contractor to 

contain costs. Contract files shall include documentation to show why a particular contract type 

other than fixed priced was selected.

(b) Fixed-price with economic price adjustment (EPA) contracts provide for an upward or 

downward revision of the stated contract price when specified contingencies occur. Fixed-price 

with EPA contracts are used to protect the contractor and the government against significant 

economic fluctuations in labor or material costs during the contract performance period beyond 

the contractor’s control. EPA contracts are based on established catalog or market prices, actual 

costs, or cost indices of labor or materials, which are specifically identified in the contract. The 
AOC Order 34-1 Contracting Manual, July 14, 2022 84

contract shall also specify the methods for the contractor to submit price adjustments and the 

CO’s review process. 

(c) Fixed-price/level-of-effort contracts are used to purchase a specified level of effort over a 

stated period of time, i.e., a specific number of hours to be performed in a specified period. This 

type of contract is not commonly used.

(d) Fixed-price incentive contracts are used when the parties can negotiate a target cost, target 

profit and a ceiling price that provides for the contractor to assume an appropriate share of the 

risk. Incentive contracting is an integral part of a contract type discussion conducted during 

planning for many acquisitions. For example, incentive contracting is only permitted when other 

contract types do not sufficiently focus contractor efforts and discourage waste. It is never the 

default selection. When appropriately used, an Incentive, Award Fee or Award Term allow the 

CO to further address risk concerns for key acquisition objectives. Another major condition for 

incentive contracting – the anticipated benefit derived from the use of an incentive – must 

outweigh the estimated cost. The true cost of an incentive is more than just the incremental 

profit/fee used to motivate a contractor. Each incentive type has its own administrative burden 

that drives cost. The Chief DCA or Chief SSMMD, as applicable, shall sign a D&F to 

substantiate that incentive contracting is in the government’s best interest. Three general rules for 

incentive contracting are:

(1) Align incentive criteria to performance, cost or scheduling result

(2) Ensure the cost-benefit equation justifies the incentive you’ve selected

(3) Use a D&F to document your selection in the contract file

(e) Fixed-price award fee. An award fee contract provides an additional profit or fee amount that 

may be awarded, in whole or in part, based upon periodic evaluations of ongoing contractor 

performance. An award fee arrangement does not include predetermined targets and automatic 

profit or fee adjustment formulas; instead, the award fee determination is a judgmental one, made 

unilaterally by the government and not subject to conventional disputes clause procedures as 

indicated by the AOC Disputes Clause inserted into the contract using the Matrix Checklist in 

effect at the time of solicitation.

8.1.3. Cost-Reimbursement Contracts

(a) Cost-reimbursement contracts generally allow payment of a contractor’s allowable incurred 

costs to the extent provided in the contract. The contract establishes an estimate of total cost to 

allow obligating funds and sets a ceiling that the contractor may not exceed (except at its own 

risk) without CO approval. Cost-reimbursement contracts should be used when uncertainties 

involved in contract performance do not permit costs to be estimated with sufficient accuracy to 

use any fixed-price contract. 

(b) Types of Cost Reimbursement contracts include:

 (1) Cost-plus-fixed-fee contracts are contracts where the contract price is the contractor’s 

allowable costs, plus a fixed fee that is negotiated and set before award

 (2) Cost-plus-incentive-fee contracts specify a target cost, a target fee, minimum and maximum 

fees, and a fee adjustment formula. After contract performance, the fee is determined in 

accordance with the formula
AOC Order 34-1 Contracting Manual, July 14, 2022 85

 (3) Cost-plus award fee contracts are contracts where the contractor receives its costs plus a fee 

consisting of a base amount (which may be zero) and an award amount based on an AOC 

evaluation sufficient to provide motivation for excellent contract performance

 (4) Cost-sharing contracts are contracts where the AOC pays a portion of the allowable costs 

and no fee

8.1.4. Letter Contracts

Letter contracts are used when the AOC’s interests demand that the contractor be given a binding 

commitment so that work can start immediately and negotiating a definitive contract is not 

possible in sufficient time to meet the requirement. Letter contracts shall include a not-to-exceed 

(NTE) price, a definitization requirement and project schedule.

8.1.5. Time-and-Material and Labor-Hour Contracts

Time-and-material and Labor-hour contracts are used when it is not possible to estimate 

accurately the extent or duration of the work or to anticipate costs with any reasonable degree of 

confidence. These types of contracts require a D&F before use, as they should be used only when 

another type of contract is not suitable. These contracts provide no incentive for cost control; 

therefore perform surveillance on the contractor to assure that the contractor is performing 

efficiently and using effective cost control measures. Immediately after award, convene a 

government meeting with appropriate functional elements to establish a strict surveillance plan 

that includes performance of periodic audits of contractor’s billings and periodic site visits by the 

COR and the contract administrator. This type of contract should contain a NTE amount/price.

8.1.6. Indefinite-Delivery Contracts (IDC)

(a) An IDC’s primary objective is to acquire supplies or services when the exact times and 

quantities of future deliveries are unknown at contract award. IDCs are also known as “delivery 

order contracts” when supplies are being acquired, and “task order contracts” when services are 

being acquired. DOs and TOs are the vehicles used to acquire the supplies and services as the 

need arises. Funds are obligated by each order and not the contract itself. Different types of IDCs 

are outlined below.

(b) Requirements Contracts.

(1) In a requirements contract, all purchase requirements for specific supplies or services 

during the contract period shall be placed with the winning contractor. The contractor is not 

promised a minimum or maximum amount of orders for the supplies/services. A 

requirements contract may be appropriate for acquiring any supplies or services when the 

AOC anticipates recurring requirements but cannot predetermine the precise quantities of 

supplies or services that will be needed during a definite period. 

 (2) The AOC must provide the offeror with estimates of the total quantity needed during the 

contract period. Estimates should be based upon actual historical requirements with 

adjustments for any anticipated program changes. This estimated quantity is stated in the 

solicitation and contract. The estimate does not guarantee that the estimated quantity will be 

ordered.

(c) Indefinite-Delivery/Indefinite-Quantity (IDIQ).

 (1) An IDIQ contract provides that during the contract period the AOC must order a stated 
AOC Order 34-1 Contracting Manual, July 14, 2022 86

minimum quantity of the supplies or services and that the contractor must furnish that 

minimum. If more supplies or services are ordered, any additional quantities are not to 

exceed a maximum provided for in the contract. An IDIQ contract may be used when it is 

not possible to determine, in advance, the precise quantities of the supplies or services that 

will be needed by the AOC during a definite period of time. 

 (2) The solicitation format for an IDC must:

 (i) Specify the contract period, including any option periods

 (ii) Include a SOW or specifications that reasonably describe the general scope, nature, 

complexity and purpose of the supplies or services the government will acquire under the 

contract in a manner that will enable a prospective offeror to decide whether to submit an 

offer

 (iii) State the procedures that the government will use in issuing orders

 (3) Most individual order requirements are contained within the scope of the contract; however, 

specific processes and information to be contained on orders are:

(i) Receipt of requisition in FMS/Momentum

(ii) SOW

(iii) Quantity

(iv) IGE

(v) Delivery or Performance Schedule

(vi) Place of delivery or performance

(vii) Packaging, packing and shipping instructions, if any

(viii)Any other document required under this CM

 (4) No protest to the agency or GAO is authorized in connection with the issuance or proposed 

issuance of an order under a TO contract or DO contract, except a protest on the grounds 

that the order increases the scope, period, or maximum value of the contract.

(d) Multiple-Award Contracts.

(1) A multiple award occurs when one solicitation is issued and two or more contracts are 

awarded for all or most of the same requirements stated in the solicitation. Generally, 

task/delivery orders under multiple-award contracts must be competed among all contract 

awardees when the IGE for the order is at or above the competition threshold that provides 

a fair opportunity on orders under multiple-award contracts. The solicitation for the 

contract must state how the orders will be competed.

(2) To the extent practicable, the CO will give preference to making multiple awards of IDIQ 

contracts under a single solicitation, while considering the:

(i) Scope and complexity of the contract requirement

(ii) Expected duration and frequency of TOs and DOs

(iii) Mix of resources a contractor must have to perform expected TOs or DOs

(iv) Ability to maintain competition among the awardees throughout contract performance

(e) Governmentwide IDIQ Contracts.

 (1) The GSA Federal Supply Service administers the FSS program. FSSs are multiple award 

IDIQ contracts available to all federal agencies. Under this program, GSA enters into 

governmentwide contracts with commercial firms to provide supplies and services.

Agencies place orders directly with the contractors. Information on contractors and ordering 

procedures on GSA schedule contracts are available through the schedules eLibrary at 
AOC Order 34-1 Contracting Manual, July 14, 2022 87

http://www.gsaelibrary.gsa.gov/ElibMain/home.do.

 (2) The Interagency Contract Directory is a central repository of Indefinite Delivery Vehicles 

(IDV) awarded by federal agencies where the IDV is available for use at the interagency 

levels. IDVs include GWACs, multi-agency contracts, other IDCs, FSS, basic ordering 

agreements (BOA) and BPAs. The URL for the directory is Contract Directory. COs shall 

comply with the procuring agencies’ procedures when using these types of contracts, 

especially with respect to fair opportunity requirements.

(f) Definite-Quantity Contracts. While seldom used, a definite-quantity contract provides for 

delivery of a definite quantity of specified supplies or services for a fixed period, with deliveries 

or performance at designated locations on a task/delivery order. This type of contract may be 

used when it is determined that a definite quantity of supplies or services will be regularly 

available or will be available after a short lead time. Definite-quantity contracts are ideal where 

precise quantities are known and storage space is not adequate for large volumes. For example, if

50 boxes of trash bags are required each week, a definite-quantity contract can be awarded for 

one to five years and require delivery of 50 boxes every Tuesday.

8.2. Service Contracts

8.2.1. General

(a) A service contract is a contract to provide a specified end result rather than a product, such as

custodial services, maintenance or repair. Service contracts may include the following:

 (1) Maintenance, overhaul, repair, servicing, rehabilitation, salvage, modernization, of supplies, 

systems or equipment

 (2) Routine recurring maintenance of real property

 (3) Housekeeping and installation services

 (4) Advisory and assistance services

 (5) Operation of AOC or government-owned equipment, facilities and systems

 (6) Communication services

 (7) A/E

 (8) Transportation and related services

 (9) Instructions and training

(b) The AOC shall not award a contract for the performance of an inherently government 

function.

8.2.2. Extension of Services

Awarding contracts for recurring and continuing service requirements may be delayed due to 

circumstances beyond the CO’s control. To avoid negotiating short-term extensions to existing 

contracts, the CO may include an Option clause, which allows continued performance in 

accordance with the contract. However, labor rates may be adjusted only as a result of a DOL 

revision to prevailing labor rates. The option provision may be exercised more than once, but 

total extension shall not exceed six months beyond the total contact term.

8.2.3. Advisory, Assistance and Other Services

(a) Advisory and assistance services mean those services provided under contract to support 
AOC Order 34-1 Contracting Manual, July 14, 2022 88

AOC personnel perform ongoing AOC operations. All advisory and assistance services are to be 

classified as one of the following:

 (1) Management and professional support services provide assistance, advice or training for 

efficient organizational management. These services normally are closely related to the 

basic responsibilities and mission of the activity originating the requirement. Included are 

efforts that support or contribute to improve the program or logistics management, project 

monitoring and data collection, budgeting, accounting, performance auditing, and 

administrative/technical support for conferences and training programs

 (2) Studies, analyses, and evaluations provide organized, analytical assessment and evaluation, 

which may include supporting models, methodologies and related software

 (3) Engineering and technical services

(b) Acquiring advisory and assistance services is a legitimate way to improve AOC services and 

operations. The AOC may contract for advisory and assistance services, when essential to the

AOC’s mission, to:

 (1) Obtain outside points of view on critical issues

 (2) Obtain advice regarding developments in industry, university or foundation research

 (3) Obtain the opinions, special knowledge or skills of noted experts

 (4) Enhance the understanding of, and develop solutions to, complex issues

 (5) Support and improve organizational operations

 (6) Ensure the efficient or effective operation of managerial or hardware systems

(c) Prohibited Advisory and Assistance Services. Advisory and assistance services shall not be:

 (1) Used in performing policy, decision-making or managerial work that is the direct 

responsibility of AOC employees

 (2) Used to bypass or undermine personnel laws or procedures

 (3) Contracted for on a preferential basis to former AOC or government employees

 (4) Used for lobbying

 (5) Used to obtain professional or technical advice that is available within the AOC or another 

federal agency

(d) Contractors may not evaluate a proposal submitted for an initial contract award unless AOC 

personnel do not have adequate training and capabilities to perform the required proposal 

evaluation and the CO makes a written determination.

8.2.4. Temporary Administrative and Professional Staffing Services 

(a) The AOC may enter into a contract with a temporary help service firm for the brief or 

intermittent use when the following conditions are met:

(1) An employee is absent for a temporary period because of a personal need including 

emergency, accident, illness, parental or family responsibilities, or mandatory jury service, 

but not including vacations or other noncompelling circumstances

 (2) The AOC must carry out work for a temporary period that cannot be delayed in the 

judgment of the organization/jurisdiction because of a critical need

 (3) The need cannot be met with current employees or through appointment of temporary 

employees
AOC Order 34-1 Contracting Manual, July 14, 2022 89

(b) Temporary services shall not be used by the AOC in lieu of the regular recruitment and hiring 

procedures under the AOC Career Staffing Plan, to displace an AOC employee or to circumvent 

controls on employment levels.

(c) No employer/employee relationship is created by AOC use of contracted temporary 

administrative and professional staff. Staff furnished by temporary help firms will not be 

considered federal employees for any purpose, will not be regarded as performing a personal 

service, and will not be eligible for civil service employee benefits, including retirement. 

(d) Temporary administrative and professional staffing services may be obtained through GSA 

Schedule 736, Temporary Administrative and Professional Staffing Services (TAPS).

8.2.5. Performance Based Acquisition

(a) Performance-based acquisition methods are intended to ensure that required performance 

quality levels are achieved and that total payment is related to the degree that services performed 

meet contract standards.

 (1) Use Performance Work Statements (PWS) to describe the work requirements in terms of 

results rather than the performance methods

 (2) Use measurable performance standards (in other words, terms of quality, timeliness, 

quantity and so on) and quality assurance plans

 (3) Specify procedures for reductions of fee or contract price when services are not performed 

or do not meet contract requirements; and include performance incentives, where appropriate

(b) Performance Work Statements.

 (1) A PWS defines requirements in clear, concise language, identifying specific work to be 

accomplished. PWSs must be individually tailored to consider the performance period.

 (2) For TO contracts, the PWS for the basic contract need only define the scope of the overall 

contract. When preparing PWSs, COs shall, to the maximum extent practicable:

 (i) Describe the work in terms of what is the required output rather than how the work is 

accomplished or the number of hours provided

 (ii) Provide measurable performance standards

 (iii) Avoid combining requirements into a single acquisition that is too broad to manage 

effectively

(c) Quality Assurance Surveillance Plan (QASP). The government or the contractor shall 

develop a QASP when acquiring services under a PWS. A QASP shall recognize the 

responsibility of the contractor to carry out its quality control obligations and shall contain 

measurable inspection and acceptance criteria corresponding to the performance standards 

contained in the PWS. The QASP shall focus on the level of performance required by the PWS 

rather than on the methodology used by the contractor to achieve that level of performance. A

QASP template available for staff use located on the AOC shared network.

8.3. Information Technology Requirements

8.3.1. Definitions

(a) Information Technology (IT). Any equipment or interconnected system(s) or subsystem(s) of 
AOC Order 34-1 Contracting Manual, July 14, 2022 90

equipment used in the automatic acquisition, storage, manipulation, management, movement, 

control, display, switching, interchange, transmission or reception of data for AOC information.

 (1) IT products and services include computers, ancillary equipment, software, firmware and

services (including support services).

 (2) IT does not include:

 (i) Any equipment that is acquired by a contractor incidental to a contract

(ii) Any equipment that contains imbedded IT that is used as an integral part of the product, 

but IT is not the principal function; for example, HVAC (heating, ventilation and air 

conditioning) equipment such as thermostats or temperature control devices are not IT

(b) Commercial Off-the-Shelf Item requires no unique government modifications or maintenance

over the life cycle of the product to meet the requirements of the AOC.

8.3.2. Procedures 

(a) Requirement Determination. Jurisdictions shall identify IT requirements pursuant to current

IT policies and orders. When developing acquisition strategy, COs should consider the rapidly 

changing nature of IT through market research and impact to network security.

(b) Risk Management. Contracting and Program Managers are responsible for assessing,

monitoring and controlling risk when selecting IT projects. Risks may include schedule, 

technical obsolescence, cost, contract type, technical feasibility and funding and program 

management. Appropriate techniques should be put in to place to manage and mitigate risk.

(c) Coordinating IT Requirements. All IT requirements must be approved, in writing, by the 

AOC CIO or Deputy CIO and documented in the requirements package. COs shall not initiate 

any IT procurement action until ITD approval is provided.

(d) Signing License Agreements. COs are authorized to sign software license agreements. OGC

must review any agreement before execution.

(e) The CO shall ensure the solicitation and contract:

 (1) Contain provisions requiring commercial warranty

 (2) Include appropriate licensing requirements

 (3) Ensure software conforms to all government and AOC security standards

 (4) Address privacy protections

 (5) Include software source and object code escrow requirements

8.4. Construction Contracts

8.4.1. Terms Explained

(a) Construction means to alter, repair or construct structures or other real property – including 

dredging, excavating and painting and includes improvements to all types of AOC facilities.

 

(b) Projects include construction, maintenance, repair, demolition, restoration and built-in 

equipment.
AOC Order 34-1 Contracting Manual, July 14, 2022 91

(c) Design-bid-build is the traditional method of construction contracting in which design and 

construction are sequential and contracted for with two separate contract actions.

(d) Design-build (D/B) is a method of construction contracting in which design and construction 

are combined in a single contract with a single contractor (or two contractors working in a 

partnership). 

(e) Plans and specifications means drawings, specifications and other preconstruction data. 

(f) An irrevocable letter of credit is a written commitment by a federally insured financial 

institution to pay all or part of a stated amount of money, until the expiration date of the letter, 

upon presentation by the AOC (the beneficiary), or a written demand. The financial institution, 

offeror or contractor cannot revoke or condition the letter of credit.

(g) Performance and payment bonds are written instruments executed by a contractor and a

surety to ensure the contractor meets its obligations to the AOC and subcontractors. If the 

contractor’s obligations are not met, the bond ensures payment, to the extent stipulated, of any 

loss by the AOC or subcontractors.

8.4.2. Procedures

(a) Specifications.

 (1) Advance notices and solicitations should be distributed to a sufficient number of prospective 

offerors to obtain adequate competition.

 (2) Construction documents shall comply with AOC Design Standards and include updated

local and national architecture, engineering and construction codes and standards.

 (3) When brand name or equal descriptions are required, specifications must clearly identify 

and describe the particular physical, functional or other characteristics of the brand-name 

items considered essential to satisfying the requirement.

 (4) When the CO determines using D/B contracting is in the AOC’s best interest, the 

solicitation should allow the offeror flexible choices in its approach to the design and 

construction. 

(b) Independent Government Estimate.

 (1) The requiring activity will prepare an IGE for the construction project. This estimate will be 

provided to the CO with the fund certification and project requirements. An IGE will also be 

required for each contract modification anticipated to exceed $25,000. The CO may require 

an IGE when the price of the required work is anticipated to be $25,000 or less. The 

estimate must contain sufficient detail to allow the CO to make a determination of price 

reasonableness for award.

 (2) Access to information concerning the IGE will be limited to AOC personnel whose official 

duties require knowledge of the estimate.

 (3) Advance notices and solicitations will state the requirement in terms of physical 

characteristics. The CO will determine when the use of an estimated price range is 

appropriate. Advance notices and solicitations shall not disclose the AOC’s IGE.
AOC Order 34-1 Contracting Manual, July 14, 2022 92

(c) Prequalifications.

 (1) Prequalification procedures may be used to ensure timely and efficient performance of 

construction projects. Prequalification procedures:

 (i) Result in a list of sources determined to be qualified to perform a specific construction 

contract

 (ii) Limit offerors to those with proven competence and experience to perform

 (2) The CO will determine when using prequalification procedures is appropriate. When 

prequalifying sources, the CO will review the contractor’s past performance, financial 

capacity, qualifications of the D/B team and experience

(d) Site Inspection and Data Examination. The CO should make arrangements for prospective 

offerors to inspect the work site and examine data concerning the work performance. The site 

inspection and examination of data may include boring samples, original boring logs, and the 

records and plans of previous construction projects. The solicitation should notify offerors of the 

time and place for the site inspection and data examination. Significant site information and the 

data should be made available to all offerors. A record should be kept of the date, identity and 

affiliation of all offerors that inspect the site and/or examine the data.

(e) Price Negotiation.

 (1) The CO will evaluate proposals based on the solicitation criteria and by comparing 

proposals to the IGE. When a proposed price is significantly lower or higher than the in

estimate, the CO will ensure that both the offeror and the AOC estimator understand the 

scope of the work. If negotiation reveals errors in the IGE, the estimate will be corrected and 

the changes documented in the contract file.

 (2) When appropriate, proposed prices may be compared to current prices for similar types of 

work and adjusted for differences in the work site and the specifications. Also, rough 

yardsticks may be developed and used, such as cost per cubic foot for structures, cost per 

linear foot for utilities, and cost per cubic yard for excavation or concrete.

(f) Labor Standards.

 (1) The solicitation shall include all labor standards clauses applying to construction contracts 

exceeding $2,000 shown in the version of the Matrix Checklist in effect at the time of 

solicitation.

 (2) Contracts for dismantling, demolition or removal of improvements are subject to either The 

Service Contract Labor Standards or The Construction Wage Rate Requirements statute. If 

the contract is solely for dismantling, demolition or removal of improvements, the Service 

Contract Labor Standards applies unless further work, which will result in the construction, 

alteration or repair of a public building or public work at that location, is contemplated.

(g) Insurance. The contractor must obtain liability and worker’s compensation insurance in 

amounts specified by the contract. In no event will the amount be less than the minimum 

requirements established by applicable state and local regulations and laws.

8.4.3. Liquidated Damages

(a) COs may not enter into or administer any construction contract estimated over $50,000 unless 

the contract includes a provision requiring the payment of liquidated damages in the amount 
AOC Order 34-1 Contracting Manual, July 14, 2022 93

determined under this section in the event that the contractor delays completion of the project.

COs may use liquidated damages for construction contracts estimated under $50,000. The CO 

shall place written documentation in the contract file for the use of liquidated damages on a

procurement under $50,000.

(b) The payment amount required under a liquidated damages provision shall be equal to:

 (1) The daily liquidated damage payment rate

 (2) The number of days by which the completion of the project is delayed

(c) Daily liquidated Damage Payment Rate.

 (1) The daily liquidated damage payment rate generally means:

 (i) $140, for a contract greater than $50,000 and less than $100,000

 (ii) $200, for a contract equal to or greater than $100,000 and equal to or less than $500,000

 (iii) The sum of $200 plus $50 for each $100,000 increment by which the contract exceeds 

$500,000, in the case of a contract greater than $500,000

 (2) The CO may adjust the daily liquidated damage payment rate involved greater or lesser than 

the rate described in this section if the CO makes a written determination that the rate 

described by this section does not accurately reflect the anticipated damages that the AOC

will suffer as a result of the delay in contract completion

(d) Before liquidated damages are deducted from any invoice, the contractor must be advised in 

writing that the CO has decided to deduct a specific amount.

8.4.4. Bonds

(a) The Miller Act is not applicable to AOC contracts by law, however, consistent with best 

practices in the federal government and consistent with the Miller Act, the AOC requires 

performance and payment bonds for construction contracts over $250,000. Before any contract 

of more than $250,000 is awarded for the construction, alteration or repair of any public building 

or public work of the federal government, a person must furnish to the government the following 

bonds, which become binding when the contract is awarded:

(1) Performance Bond. A performance bond with a surety satisfactory to the CO, and in an 

amount the CO considers adequate, for the protection of the government.

(2) Payment Bond. A payment bond with a surety satisfactory to the CO for the protection of 

all persons supplying labor and material in carrying out the work provided for in the 

contract for the use of each person. The amount of the payment bond shall equal the total 

amount payable by the terms of the contract unless the CO determines, in writing supported 

by specific findings, that a payment bond in that amount is impractical, in which case the 

CO shall set the amount of the payment bond. The amount of the payment bond shall not be 

less than the amount of the performance bond.

(3) Bid Bond or Offer Guarantee. Whenever performance and payments bonds are required in 

a construction contract, the CO shall determine the amount of a bid/offer guarantee in an

amount adequate to protect the government from loss should the successful bidder/offeror

fail to execute further contractual documents and bonds as required. The bid/offer guarantee 

amount shall be at least 20 percent of the IGE but shall not exceed $3 million.
AOC Order 34-1 Contracting Manual, July 14, 2022 94

(b) Bond Amounts Required.

(1) For contracts over $250,000, the penal amount of performance and payment bonds shall be 

100 percent of the original contract price, unless the CO determines, in writing, that a lesser 

amount would be adequate to protect the AOC. If the contract price increases, contract 

clauses require the contractor to secure additional protection equal to 100 percent of the 

contract amount reflected in an increase to the penal amount of the existing bonds, obtain 

additional bonds or furnish additional alternative performance protection. The amount of the 

payment bond must be no less than the amount of the performance bond.

(2) For contracts between $25,000 and $250,000, the penal amount of the payment bond or the 

alternative payment protection shall be 100 percent of the original contract price, unless the 

CO determines, in writing, that a lesser amount would be adequate to protect the AOC If the 

contract price increases, contract clauses require the contractor to secure additional 

protection equal to 100 percent of the contract amount reflected in an increase to the penal 

amount of the existing bonds, obtain additional bonds or furnish additional alternative 

payment protection.

(c) The CO shall insert the appropriate clause shown in the version of the Matrix Checklist in 

effect at the time of solicitation in all construction, alteration or repair of building(s) contracts 

when the contract is expected to exceed $250,000.

(d) The AOC does not accept bonds from individual sureties.

8.5. A/E Contracts

(a) A/E services are professional services of an architectural or engineering nature that are 

performed or approved by a person licensed, registered or certified to provide such services. A/E 

services include research, planning, development, construction design, alterations, real property 

repair, studies, investigations, surveying, mapping, tests, evaluations, program management, 

conceptual designs, plans and specifications, soil engineering, drawing review, preparing 

operating and maintenance manuals and other related services.

(b) An SOW for A/E services related to construction design shall require the A/E to consider 

energy conservation, environmental considerations and waste reduction to the maximum extent 

practicable.

(c) Evaluation Board.

 (1) When acquiring A/E services, the CO will establish an A/E board composed of members 

who have experience in architecture, engineering, construction and AOC-related 

acquisitions. One member of the board will be designated as the chairperson. The 

chairperson must ensure that all members of the board have current ethics training in 

accordance with AOC Order 38-1 and certify that no members of the board have any 

conflicts of interest such as relatives or friends with any bidders.

 (2) The CO may include nongovernment members on the board who are AOC contractors. No 

firm shall be eligible for the award of an A/E contract during a period in which any of its 

principals or associates are participating as members of an evaluation board on that contract.

(3) In accordance with the evaluation criteria and evaluation plan, the evaluation board will 

perform the following functions:
AOC Order 34-1 Contracting Manual, July 14, 2022 95

 (i) Review past performance information

 (ii) Evaluate the firm(s) for technical merit in accordance with:

A. Professional qualifications necessary for satisfactory performance of required services

B. Specialized experience and technical competence in the type of work required

C. Capacity to accomplish the work in the required time

D. Past performance on contracts with government agencies and private industry in terms 

of cost control, quality of work and compliance with performance schedules

E. General geographical area of the project and knowledge of the locality of the project

F. Other evaluation criteria, as appropriate

 (iii) Hold discussions if needed with the CO and most highly qualified firms regarding concepts 

and using alternative methods of furnishing the required services; A/E fees will not be 

considered in these discussions

 (iv) Prepare an evaluation report for the CO recommending, in order of preference, at least 

three firms that are considered the most highly qualified to perform the required services;

the report will include a description of the discussions and evaluations conducted by the 

board to allow the CO to review the considerations upon which the recommendations are 

based

(d) CO Functions.

 (1) The CO will conduct negotiations with the most highly rated firm(s) and, with the advice of 

the evaluation board, make the final selection. Negotiations are held with only one firm at a 

time, based on order of technical merit. The negotiations will only commence upon receipt 

of the evaluation report. Because selection of A/E firms is based upon qualifications, the 

extent of any subcontracting is an important negotiation topic.

 (2) If a mutually satisfactory contract cannot be negotiated, the CO shall notify the firm that 

negotiations have been terminated. The CO shall then initiate negotiations with the next 

most highly rated firm as set forth in the evaluation report. This process shall continue until 

a mutually satisfactory contract has been negotiated.

(e) A/E Liability and Insurance. A/E contractors shall be responsible for the quality, technical 

accuracy and coordination of services required under its contracts. A/E firms shall be required to 

carry professional liability insurance-general coverage (errors and omissions). The A/E shall be 

fully responsible to the AOC for work performed by their associates, subcontractors and 

professional consultants. An A/E firm may be liable for AOC costs resulting from errors, 

omissions or deficiencies in designs furnished under its contract. Therefore, when a modification 

to a construction contract is required because of an error, omission or deficiency in the service 

provided by an A/E contractor, the CO, with the advice of technical personnel and OGC, will 

consider the extent to which the A/E contractor may be reasonably liable.

(f) Cost of Corrections. Under A/E contracts, contractors shall be required to make necessary 

corrections at no cost to the AOC when designs, drawings, specifications or other items or 

services furnished contain any errors, deficiencies or inadequacies. If the AOC does not require a 

firm to correct errors, the CO shall make a written determination of the decision in the contract 

file.

(g) Design Within Funding Limitations. The AOC may require the A/E contractor to design the 
AOC Order 34-1 Contracting Manual, July 14, 2022 96

project so that construction costs will not exceed a contractually specified funding limit. If the 

price of construction proposed in response to an AOC solicitation exceeds the construction 

funding limitation in the A/E contract, the A/E shall be solely responsible for redesigning the 

project within the funding limit. These additional services shall be performed at no increase in 

the contract price. The CO shall insert the appropriate clause shown in the version of the Matrix 

Checklist in effect at the time of solicitation in fixed-price A/E contracts. The amount of the 

construction funding limitation will be established during negotiations.

(h) Prohibitions. No construction contract shall be awarded to the firm, or its subsidiaries or 

affiliates, that designed the project, except for the D/B construction method or with the approval 

of the Chief, DCA.
AOC Order 34-1 Contracting Manual, July 14, 2022 97

CHAPTER IX. ACQUISITION PROCESS

9.1. Negotiated Acquisitions

9.1.1. General

Negotiation is a flexible contracting method that permits contracting personnel to hold 

discussions and obtain clarification of initial assumptions and positions. Discussions may include 

price, schedule, technical requirements, contract type or other terms of a proposed contract. 

Negotiation allows the CO the widest discretion in arriving at a fair and reasonable price with 

mutually agreed upon contract terms. Negotiation is the preferred method of contracting and will 

be accomplished on a competitive basis to the maximum extent practicable.

9.1.2. Source Selection Processes

The objective of source selection is to select the proposal that best meets the requirements of the 

solicitation and to obtain the best value for the AOC. There are two main source selection 

processes: 

(a) Tradeoff Process. This method is appropriate when the CO may award to other than the 

lowest priced offeror or the highest technically rated offeror. It allows tradeoffs between price 

and non-price factors. This process permits tradeoff among cost or price and non-cost factors and 

allows the AOC to accept other than the lowest priced proposal. The benefits of the higher priced 

proposal shall justify the additional cost and the tradeoff rationale must be documented in the 

file. The solicitation in a tradeoff procurement must include:

 (1) All evaluation factors and significant sub factors affecting contract award with the factor’s 

relative importance.

 (2) Whether all evaluation factors other than cost or price, when combined, are significantly 

more than, approximately equal to, or significantly less important than cost or price.

(b) Lowest Price, Technically Acceptable (LPTA) Process. Staff must avoid the use of LPTA 

source selection criteria in circumstances that would deny the AOC the benefits of cost and 

technical tradeoffs in the source selection process. The LPTA source selection process shall only 

be used when: 

(1) The agency can comprehensively and clearly describe the minimum requirements in terms 

of performance objectives, measures and standards that will be used to determine the 

acceptability of offers

(2) The agency would realize no, or minimal, value from a proposal that exceeds the minimum 

technical or performance requirements

(3) The agency believes the technical proposals will require no, or minimal, subjective 

judgment by the source selection authority as to the desirability of one offeror’s proposal 

versus a competing proposal

(4) The agency has a high degree of confidence that reviewing the technical proposals of all 

offerors would not result in the identification of characteristics that could provide value or 

benefit to the agency

(5) The agency determined that the lowest price reflects the total cost, including operation and 

support, of the product(s) or service(s) being acquired

(6) Tradeoffs are not permitted
AOC Order 34-1 Contracting Manual, July 14, 2022 98

(7) Proposals are only evaluated for technical acceptability and not ranked

(8) Exchanges with offerors may occur

(9) The CO documents the contract file describing the circumstances that justify the use of the 

lowest price technically acceptable source selection process

(c) The evaluation criteria establishing the requirements of acceptability shall be set forth in the 

solicitation. The solicitations shall specify that award will be made based on the lowest evaluated 

price of proposals meeting or exceeding the acceptability standards for noncost factors. Past 

performance may be used, but is not required, as an evaluation factor. If past performance is used 

as an evaluation factor, then the solicitation must state the past performance evaluation approach.

(d) COs shall avoid, to the maximum extent practicable, using the LPTA source selection process 

in the case of a procurement that is predominantly for the acquisition of:

(1) Information technology services

(2) Cybersecurity services

(3) A/E design and assistance services

(4) Advanced electronic testing

(5) Audit or audit readiness services

(6) Health care services and records

(7) Telecommunications devices and services

(8) Knowledge-based professional services

(9) Personal protective equipment

9.1.3. Solicitation Terms and Conditions

(a) Uniform Contract Format (UCF). COs will normally prepare solicitations (RFPs) and 

resulting contracts using the UCF.

 (1) The UCF is based on SF33 Solicitation Offer and Award (for supplies and services) and

consists of four parts:

(i) Part I – The Schedule. Includes subparts A-H, specifically A – Solicitation/contract form; 

B – Supplies or Services & Prices or Costs; C – Specifications/SOW; D – Packaging and 

Marking; E – Inspection and Acceptance; F – Deliveries or Performance; G – Contract 

Administration Data; and H – Special Contract Requirements

(ii) Part II – Contract Clauses. Includes subsection I – Contract Clauses

(iii) Part III – List of Documents, Exhibits and Other Attachments. Includes subsection J –

List of Attachments

(iv) Part IV – Representations and Instructions. Includes subsections K-M, specifically K –

Representations, Certifications & Other Statements; L – Instructions, Conditions & 

Notices to Offerors or Quoters; and M – Evaluation Factors for Award

 (2) Solicitations contain all four parts, but Part IV is not included in the contract.

 (3) The Construction and A/E UCF is based on SF1442 but contains the four major parts and 

sub parts above. For construction contracts, the CO may solicit and award using CSI format

(a multi-divisional volume of specifications).

(b) An RFP is the instrument by which negotiated acquisitions are initiated. It provides a 

potential offeror with the opportunity to offer a price and a plan for accomplishing a particular 

acquisition and is issued on SF33 or SF1442 as appropriate. RFPs are used in negotiated 
AOC Order 34-1 Contracting Manual, July 14, 2022 99

acquisitions to communicate AOC requirements to prospective offerors and to solicit proposals 

in meeting those requirements.

(c) Evaluation Criteria.

 (1) The solicitation shall clearly describe the evaluation criteria by which proposals will be 

evaluated and the relationship between the criteria. The criteria to be considered in 

evaluating offers must:

 (i) Be tailored to each acquisition

 (ii) Tie directly to requirements in the SOW (although not all requirements must be evaluated)

(iii) Represent what is most important to the requiring activity

 (iv) Support meaningful comparisons among proposals

 (v) Assist the evaluation team in discriminating among proposals

 (2) The quality of the product or service shall be considered in every source selection through 

examining one or more noncost evaluation factors such as past performance, compliance 

with solicitation requirements, technical excellence, management capability, key personnel 

qualifications or prior experience.

 (3) Price or cost to the AOC shall be evaluated in every source selection. In evaluating price, 

any discount offered for quantity of items ordered, any shipping charges and any minimum 

order charges should be used to determine the actual price of the supplies, services or 

construction.

 (4) Multiple award evaluation. The solicitation shall state if multiple awards will be considered. 

(d) Options.

 (1) Using contract options affords the AOC the unilateral right, for a specified period of time, to 

purchase additional supplies or services called for in the contract, or to elect to extend the 

term of the contract. When exercising an option, the CO shall provide the contractor a 

preliminary written notice before contract expiration in accordance with the contract’s 

option clause. Solicitations containing options shall state the evaluation basis, either 

exclusive or inclusive of the option and shall inform the offeror if it is anticipated that the 

AOC may exercise the option at time of award.

 (2) Options should not be used when:

 (i) The supplies or services are readily available on the open market (except for extending the 

term of indefinite delivery type contracts)

 (ii) The contractor or the AOC will incur undue risk, such as the inability to estimate the price 

or determine availability of required materials and labor for future requirements

 (iii) Market prices for supplies or services are likely to change substantially

 (iv) The option represents known requirements for which funds are available

 (v) There is no anticipated need to continue beyond the initial contract period (except in 

service contracts to ensure continued operation and to avoid possible increased cost that 

might result from interrupted support)

(3) Options will be priced at initial award. Priced options may be firm dollar amounts or may be 

tied either to published indices at solicitation or award or to a maximum percentage 

increase. When the contract provides for economic price adjustment and the contractor 

requests a price revision, the CO shall determine the price adjustment effect under the 

option before the option is exercised. If an informal analysis of prices or an examination of 

the market indicates that the option price is better than market prices or that the option is the 
AOC Order 34-1 Contracting Manual, July 14, 2022 100

more advantageous offer, the CO may exercise the option. If the CO determines that option 

pricing is not more advantageous, then the requirement should be resolicited. This 

determination shall be documented in the contract file.

 (4) When options are included in the solicitation the CO shall:

 (i) Complete a justification for inclusion of options

 (ii) Include the appropriate clause shown in the version of the Matrix Checklist in effect at the 

time of solicitation

(e) Delivery and Performance Time. The delivery or performance time is an essential contracting 

element and will be clearly stated in all solicitations. Required delivery or performance times 

should be realistic to avoid restricting competition. The contractor is responsible for timely 

contract performance. The CO shall monitor contract delivery and performance time to protect 

the AOC’s interest.

(f) Quality Assurance.

 (1) COs shall include appropriate inspection, acceptance and other quality requirements in 

solicitations and contracts to protect the AOC’s interest. Generally, when acquiring 

commercial products / services, standard commercial warranties will be used, although COs 

have the discretion to use additional inspection requirements where appropriate.

 (2) When applicable, the appropriate warranty clauses shall be inserted in contracts. The 

contractor is liable under the warranty clause for only the defects covered by the warranty. 

(i) The defects covered in the typical supply warranty clause are those of defects in material 

and workmanship. If the defect discovered is covered under the warranty, it does not 

matter whether it is a patent or a latent defect, since the contractor has warranted the items 

to be free from defects and is liable for their correction or replacement.

(ii) Warranty clauses should state when coverage begins and ends and the time in which

notice of a defect must be given to the contractor.

(g) Liquidated Damages. When determining whether to use a liquidated damages clause, the CO 

should consider its likely effect on pricing, competition and contract administration. If the CO 

decides to use a liquidated damages clause, the applicable clause and the appropriate liquidated 

damage rate will be included in the solicitation. (Also see Chapter 8, paragraph 8.4.3.)

 

(h) E-Verify. AOC sole proprietors (including self-employed individuals) and contractors shall 

use the E-Verify system to verify employment eligibility. The sole proprietor (including selfemployed individual)/contractor consents to release information relating to compliance with its 

verification responsibilities to the AOC in accordance with the appropriate clause shown in the 

version of the Matrix Checklist in effect at the time of solicitation.

 (1) COs shall include in solicitations and contracts requirements that sole 

proprietors/contractors must:

(i) Enroll in E-Verify

(ii) Use E-Verify to verify employment eligibility of its AOC workforce

(iii) Submit documentation evidencing that individuals working at the AOC are authorized to 

work in the United States and have been determined eligible for employment in E-Verify

(iv) Include these requirements in any subcontracts

 (2) Waivers from E-Verify requirements that are available by law or regulation shall be 
AOC Order 34-1 Contracting Manual, July 14, 2022 101

requested in writing with supporting documentation and submitted to the CO. These 

include:

(i) Employees hired on or before November 6, 1986 and continuing in employment with the 

same employer

(ii) Employees hired in the Commonwealth of the Northern Mariana Islands on or before 

November 27, 2009

(iii) Employees who hold an active confidential, secret, or top secret security clearance in 

accordance with the National Industrial Security Program Operating Manual

(iv) Employees who have undergone a completed background investigation and who have 

been issued credentials pursuant to Homeland Security Presidential Directive – 12 

(HSPD-12 credential)

 (3) The following organizations awarded an AOC contract are only required to use E-Verify for 

new hires and existing nonexempt employees who are working directly under a covered 

contract:

(i) State and local governments

(ii) Institutions of higher education (as defined at 20 U.S.C. § 1001(a))

(iii) Governments of federally recognized Indian tribes

(iv) Sureties performing under a takeover agreement entered into with a federal agency under 

a performance bond

 (4) The authority to issue a waiver of E-Verify requirements rests with the AOC CAO. Only the 

CAO may formally waive the E-Verify requirement for: a contract or subcontract; or a class of 

contracts or subcontracts. This waiver authority may not be delegated.

 (5) Waivers may be either temporary or for the performance period of a specific contract.

 (6) COs shall place a copy of all waivers obtained by the contractor in the applicable contract 

file.

9.1.4. Source Selection Authority

(a) The CO is designated as the source selection authority (SSA) unless the Chief DCA or Chief 

SSMMD, as applicable, appoints another individual for a particular acquisition.

(b) The SSA shall:

 (1) Establish an evaluation team, tailored for the particular acquisition, that includes appropriate 

contracting, legal, logistics, technical and finance experts to provide the appropriate 

expertise to ensure a comprehensive evaluation

 (2) Approve the source selection strategy and AP, if applicable, before solicitation release

 (3) Ensure consistency among the solicitation requirements, notices to offeror(s), proposal 

preparation instructions, evaluation factors and subfactors, solicitation provisions or contract 

clauses and data requirements

 (4) Ensure that proposals are evaluated based solely on the evaluation factors and sub factors 

contained in the RFP

 (5) Consider the recommendations of advisory boards or panels, if any

 (6) Select the source(s) whose proposal(s) offers the best value to the AOC

(c) The CO shall:
AOC Order 34-1 Contracting Manual, July 14, 2022 102

 (1) After solicitation release, serve as the contact person for inquiries from actual or prospective 

offeror(s)

 (2) After receipt of proposals, control exchanges with offeror(s)

 (3) Award the contract

9.1.5. Exchanges With Industry Before Receipt of Proposals

(a) Information exchanges among interested parties are encouraged. Any information exchange 

must be consistent with AOC Order 38-1 and applicable laws. Interested parties include potential 

offerors, contracting staff and supporting personnel, and others involved in an acquisition.

(b) The purpose of exchanging information is to improve the understanding of AOC 

requirements and industry capabilities, allowing potential offerors to determine how they can 

satisfy the AOC’s requirements. It enhances the AOC’s ability to obtain quality supplies and 

services, including construction, at reasonable prices, and to increase efficiency in proposal 

preparation, evaluation, negotiation and contract award.

(c) COs are encouraged to promote early information exchanges about future acquisitions. An 

early information exchange among industry representatives and the program manager, CO and 

other participants in the acquisition process can identify and resolve concerns regarding the 

acquisition strategy. These exchanges include proposed contract type, terms and conditions, 

acquisition planning schedules, the feasibility of the requirement (including performance 

requirements), statements of work and data requirements. Some techniques to promote early 

information exchanges are:

 (1) Holding an Industry Day

 (2) Conducting market research

 (3) Meeting with potential offerors

 (4) Releasing presolicitation notices, draft RFPs or RFIs

 (5) Holding presolicitation or preproposal conferences

 (6) Allowing site visits

(d) An RFI may be used when the AOC does not presently intend to award a contract but wants 

to obtain price, delivery, other market information or capabilities for planning purposes. 

Responses to these requests are not offers and cannot be accepted by the AOC to form a binding 

contract. There is no required format for RFIs.

(e) Releasing Information. General information regarding the AOC’s mission may be disclosed 

at any time.

 (1) When specific information about a proposed acquisition that would be necessary for the 

preparation of proposals is disclosed to one or more potential offerors, the CO shall make 

that information available to all potential offerors to avoid creating an unfair competitive 

advantage.

 (2) Information provided to a particular offeror in response to that offeror’s request shall not be 

disclosed if doing so would reveal the potential offeror’s confidential business strategy.

 (3) When a presolicitation or proposal conference is conducted, materials distributed at the 

conference should be made available to all potential offerors upon request.
AOC Order 34-1 Contracting Manual, July 14, 2022 103

9.1.6. Amending Solicitations 

(a) After the solicitation has been issued, but before the closing date, it may become necessary to 

change, correct or clarify the SOW, specifications, quantities, delivery schedule or the closing 

date. The CO issues an amendment to the solicitation using SF30, Amendment of 

Solicitation/Modification of Contract, that is furnished to all offerors. 

(b) Amendments issued after the RFP closing date shall be issued to all offerors that have not 

been eliminated from the competition.

(c) The CO will determine whether the closing date will be revised based on the amendment’s 

content. This determination will be made in coordination with the requiring activity. If the CO 

decides to revise the closing date, prospective offerors will be notified simultaneously. Oral 

notice may be used when time is of the essence, the CO documents notice in the file and a formal 

amendment is subsequently sent.

(d) If, in the CO’s judgment, an amendment, after offers have been received, is so substantial that 

it exceeds what prospective offerors reasonably could have anticipated and additional sources 

likely would have submitted offers had the amendment been known to them, the CO shall cancel 

the original solicitation and issue a new one.

(e) The CO will not award a contract unless all amendments have been acknowledged by the 

successful offeror, either listed on the solicitation form or acknowledged on each amendment and 

submitted with the offeror’s proposal.

9.1.7. Solicitation Response Time

The CO shall establish a solicitation response time that will afford potential offerors a reasonable 

opportunity to respond to the solicitation. The CO should consider the individual circumstances, 

such as the acquisition’s complexity, commercial availability or urgency. Offerors are normally 

allowed 30 days or longer to respond to a solicitation. Time frames shorter than 30 days may be 

used if it is in the AOC’s best interest and the reason is documented in the contract file.

9.1.8. Handling Proposals

(a) When responses to solicitations are received, the CO or designated individual will ensure the 

submission is promptly marked with date and time received.

(b) Proposals shall be safeguarded from unauthorized disclosure of information throughout the 

source selection process. The proposal contents are competition sensitive and are not to be 

disclosed. 

(c) Electronic receipt of proposals is the preferred delivery method. If any portion of a proposal 

received by the CO electronically is unreadable, the CO shall notify the offeror in a timely 

manner and permit the offeror to resubmit the unreadable portion of the proposal. The CO shall 

prescribe the method and time for resubmission after consultation with the offeror. The 

resubmission shall be considered as if it were received at the date and time of the original 

unreadable submission for the purpose of determining timeliness, provided the offeror complies 

with the time and format requirements for resubmission prescribed by the CO.
AOC Order 34-1 Contracting Manual, July 14, 2022 104

9.1.9. Submission, Revision and Withdrawal of Proposals

(a) A proposal in response to an RFP is an offer that may be accepted by the AOC and creates a 

binding contract.

(b) Offerors are responsible for submitting offers, and any revisions and ensuring the offers reach 

the AOC office designated in the solicitation on time. If an emergency or unanticipated event 

interrupts normal delivery so that proposals cannot be received by the exact time specified in the 

solicitation, and urgent requirements preclude amendment of the solicitation closing date, the 

time specified for receipt of proposals will be deemed to be extended to the same time of day 

specified in the solicitation on the first work day on which normal AOC processes resume.

(c) Proposals and revisions that are received in the designated AOC office after the exact time 

specified shall be considered only if:

 (1) It was transmitted through an electronic commerce method authorized by the solicitation 

and was received at the AOC not later than the closing date and time specified in the 

solicitation

 (2) It is the only proposal received

(d) The CO shall promptly notify any offeror if its proposal, modification or revision was 

received late and shall inform the offeror whether it will be considered, unless contract award is 

imminent, and document in the contract file why a late proposal or modification was accepted or 

rejected.

(e) Late proposals and modifications that are not considered shall be held unopened until after 

award and then retained, unopened, with other unsuccessful proposals.

(f) Proposals may be withdrawn at any time before award. Written proposals are withdrawn upon 

the CO’s receipt of a written notice of withdrawal. Oral proposals in response to oral solicitations 

may be withdrawn orally and documented in the contract file. One copy of withdrawn proposals 

shall be retained in the contract file. Extra copies of withdrawn proposals may be destroyed or 

returned to the offeror at the offeror’s request and expense. Upon withdrawal of an electronically 

transmitted proposal, the data received shall not be viewed and shall be deleted from primary and 

backup data storage systems.

(g) If the solicitation is canceled, all offerors to whom the solicitation was sent will be notified of 

the cancellation in writing. Proposals received in response to the solicitation will be returned 

unopened to the offerors. Proposals received by electronic transmission shall be deleted from the 

primary and backup data storage systems. Each offeror shall be notified that the information was 

deleted.

9.1.10. Oral Presentations

(a) The solicitation may require each offeror to submit part of its proposal through oral 

presentations. When an offeror’s qualifications and capability to perform the work and/or 

understanding of the requirements are the primary evaluation factors, an oral presentation may be 

useful. An oral presentation allows the evaluation team to observe the offeror’s technical team 
AOC Order 34-1 Contracting Manual, July 14, 2022 105

and how it functions together. Oral presentations may occur at any time in the evaluation 

process. Information pertaining to areas such as an offeror’s capability, past performance, work 

plans or approaches, staffing resources and transition plans may be presented orally.

(b) The AOC must consider the following when deciding to conduct oral presentations:

 (1) The AOC’s ability to adequately evaluate the oral information

 (2) The need to incorporate any information in the contract

 (3) The impact on the efficiency of the acquisition

 (4) The impact on the offeror, to include cost. Alternatives to on site oral presentations, such as 

teleconferencing or video teleconferencing, should be considered

(c) When requesting oral presentations, the RFP should include:

 (1) Information to be presented

 (2) Qualifications, by function or job title, of personnel giving the oral presentation

 (3) Limitations on written material and date before the presentation when the written material is 

to be submitted

 (4) Location, date and time for presentation

 (5) Restrictions on length of presentation

 (6) Scope and content of exchanges to take place after the presentation

(d) The CO shall ensure that no additional written materials are accepted. The evaluators should 

rate each offeror directly after its presentation. The CO must document the file regarding the 

presentation. The documentation may be in the form of notes, audiotape, videotape, written 

record and/or copies of slides and so on at the discretion of the CO. 

(e) Any exchanges to be conducted should be clearly stated in the solicitation. If the AOC’s

intent is to award without discussions, only clarifications may be addressed after the 

presentation. If the AOC intends to award with discussions, exchanges can be more extensive, 

such as a question and answer session between the evaluation team and the offeror’s team. 

9.1.11. Exchanges With Offerors After Receipt of Proposals

(a) Definitions.

 (1) Clarifications. Limited exchanges between the CO and the offerors that occur before award. 

Clarifications can be used to resolve minor or clerical errors.

 (2) Communications. Exchanges between the AOC and offerors after receipt of proposals, 

leading to establishment of the competitive range.

 (3) Discussions. Negotiations that occur after establishing the competitive range that may, at the 

CO’s discretion, result in an offeror being allowed to revise its proposal.

 (4) Deficiency. A material failure of a proposal to meet a solicitation requirement, or a 

combination of significant weaknesses in a proposal that increases the risk of unsuccessful 

contract performance to an unacceptable level. A deficient proposal shall not receive 

contract award.

 (5) Weakness. A flaw in a proposal that increases the risk of unsuccessful performance. A 

significant weakness in a proposal is a flaw that substantially increases the risk of 

unsuccessful contract performance.
AOC Order 34-1 Contracting Manual, July 14, 2022 106

(b) Clarifications and Award Without Discussions.

 (1) If award will be made without discussions, offerors may be given the opportunity to clarify 

certain proposal aspects or to resolve minor/clerical errors (e.g., the relevance of an offeror’s 

past performance information, adverse past performance information to which the offeror 

has not previously had an opportunity to respond).

 (2) Award may be made without discussions if the solicitation states that the AOC intends to 

evaluate proposals and make award without discussions. If the solicitation contains such a 

notice and the AOC determines it is necessary to conduct discussions, the rationale for 

doing so shall be documented in the contract file.

(c) Communications With Offerors Before Establishing the Competitive Range.

 (1) If a competitive range is to be established, communications:

 (i) Shall be limited to the offerors who submitted proposals in response to the solicitation

 (ii) Shall be held with offerors whose past performance information is preventing them from 

being placed within the competitive range

 (iii) May only be held with those offerors whose exclusion from or inclusion in the 

competitive range is uncertain

 (iv) May be conducted to enhance the AOC’s understanding of the proposal, allow reasonable 

interpretation of the proposal or facilitate the AOC’s evaluation process

 (v) Are to address issues such as ambiguities weaknesses, errors, omissions or mistakes or past 

performance information including adverse past performance information to which the 

offeror has not previously had an opportunity to respond

 (2) Communications shall not be used to cure proposal deficiencies or material omissions, 

materially alter the technical or cost elements of the proposal, or otherwise revise the 

proposal. Communications may be considered in rating proposals for the purpose of 

establishing the competitive range.

(d) Competitive Range.

 (1) If discussions are to be conducted, a competitive range must be established. Based on the 

ratings of each proposal against all evaluation criteria, the CO shall establish a competitive 

range.

 (2) The CO may limit the number of proposals in the competitive range to the greatest number 

that will permit an efficient competition among the most highly rated proposals.

 (3) If the CO decides that an offeror’s proposal should no longer be included in the competitive 

range, the proposal shall be eliminated from consideration for award. Written notice of this 

decision shall be provided to unsuccessful offerors in a timely manner.

 (4) Offerors excluded or otherwise eliminated from the competitive range may request a 

debriefing.

(e) Discussions With Offerors After Establishing the Competitive Range.

 (1) Discussions are tailored to each offeror’s proposal and shall be conducted by the CO with 

each offeror within the competitive range.

 (2) The objective of discussions is to maximize the AOC’s ability to obtain best value.

 (3) The CO shall indicate the significant weaknesses, deficiencies and other aspects of each 

offeror’s proposal that could be altered or explained to enhance materially the proposal’s 

potential for award. The scope and extent of discussions are a matter of the CO’s or the 
AOC Order 34-1 Contracting Manual, July 14, 2022 107

SSA’s judgment.

 (4) An offeror originally in the competitive range may be eliminated from the competitive range 

after discussions have begun, regardless of whether all material aspects of the proposal have 

been discussed, or the offeror has submitted a proposal revision.

(f) Limits on exchanges. AOC personnel involved in an acquisition shall not:

 (1) Favor one offeror over another

 (2) Reveal the name(s) of other offerors

 (3) Reveal an offeror’s technical solution, including unique technology, innovative and unique 

uses of commercial products / services, or any other information that would compromise an 

offeror’s intellectual property to another offeror

 (4) Reveal an offeror’s price to other offerors without that offeror’s permission (except the CO 

may inform an offeror that its price is considered by the AOC to be too high or too low and 

reveal the results of the analysis supporting that conclusion)

 (5) Reveal the names of individuals providing past performance information

9.1.12. Proposal Revisions

(a) If an offeror’s proposal is eliminated from the competitive range, no further revisions to the 

offeror’s proposal shall be accepted or considered.

(b) The CO may allow proposal revisions to clarify and document understandings reached during 

discussions. Each offeror still in the competitive range after discussions shall be given an 

opportunity to submit a revised final proposal. The CO shall establish a common cut-off date for 

receiving revised final proposals. Requests for revised final proposals shall advise offerors that 

the revised final proposal revisions shall be in writing and that the AOC intends to award without 

further revisions.

9.1.13. Pre-Award Survey

(a) A pre-award survey is normally required when the information readily available to the CO, 

including information from commercial sources, is insufficient to determine responsibility. 

Generally, pre-award surveys should not be done for contracts of $250,000 or less.

(b) Information obtained during a pre-award survey may include finances, incorporation details, 

firm officers’ names and positions, company history and past performance. Information 

requested should relate directly to the solicitation requirements.

(c) The results of the pre-award survey shall be documented in the contract file.

9.1.14. Evaluating Proposals

(a) The technical proposal evaluation is the foundation of the source selection process and the 

pending contract award. The AOC uses an adjectival rating system to evaluate proposals:

 (1) Outstanding: The proposal provides a very clear, comprehensive and detailed response that

meets all requirements and includes significant strengths with no deficiencies or significant 

weaknesses. The risk of unsuccessful performance is very low as the proposal demonstrates a 
AOC Order 34-1 Contracting Manual, July 14, 2022 108

clear understanding of the requirements and can be expected to result in outstanding 

performance.

 (2) Good: The proposal provides a sound response that meets all requirements and includes 

strengths with no deficiencies and few weaknesses. The risk of unsuccessful performance is low 

as the proposal demonstrates an understanding of the requirements and can be expected to result 

in satisfactory performance.

 (3) Acceptable: The proposal provides a response that is capable of meeting all requirements 

but includes both strengths and weaknesses with no deficiencies. Strengths are not outweighed 

by the weaknesses. The risk of unsuccessful performance is moderate as the proposal 

demonstrates a general understanding of the requirements and can be expected to result in 

satisfactory performance.

 (4) Marginal: The proposal provides a response that does not meet all requirements and 

includes strengths, weaknesses and/or deficiencies. Strengths are outweighed by the weaknesses 

and/or deficiencies. The risk of unsuccessful performance is high as the proposal does not 

demonstrate an understanding of the requirements and can be expected to result in unsatisfactory 

performance.

 (5) Unacceptable: The proposal provides a response that does not meet all requirements and 

includes significant weaknesses and/or deficiencies that far outweigh any strengths. The risk of 

unsuccessful performance is very high as the proposal does not demonstrate an understanding of 

the requirements and will result in unsatisfactory performance.

(b) Source Selection Decision.

 (1) The SSA’s decision shall be based on comparing proposals against all source selection 

criteria in the solicitation. While the SSA may use reports and analyses prepared by others, 

the source selection decision shall represent the SSA’s independent judgment. 

 (2) The source selection decision shall be documented, including the rationale for any business 

judgments, tradeoffs made or relied on by the SSA, and cost-benefit analysis.

9.1.15. Contract Award 

(a) The CO shall award a contract to the successful offeror(s) by furnishing the executed contract 

or other notice of award to that offeror. No award will be made until the following 

determinations are made:

 (1) The proposal conforms to the solicitation

 (2) The price is fair and reasonable

(3) The offeror is responsible

(b) These determinations, along with a description of the evaluation process and rationale for 

award, shall be documented in the contract file and signed by the CO. Solicitation sections K

(Representations, Certifications, and Other Statements of Offeror’s), L (Instructions, Conditions, 

and Notices to Offeror’s) and M (Evaluation Factors for Award) shall be included in the contract 

file and removed from the contract document, and this should be indicated on the cover page of 

the contract. 

(c) For the proposal information to be legally binding it must be incorporated into the contract, it 

does not automatically become part of the contract. When incorporating information from the 

offeror’s proposal, the CO must ensure that the information is relevant and does not conflict with 

the contract terms and conditions. It is insufficient to state that a proposal is incorporated into the 
AOC Order 34-1 Contracting Manual, July 14, 2022 109

contract.

(d) The offer, including additions and changes resulting from negotiations, is accepted when the 

CO signs the contract. If the award includes information different from the latest signed 

proposal, as amended by the offeror’s written correspondence, both the offeror and the CO shall 

sign the contract. The effective date of award will be the date the contract is signed by the CO, 

unless a future date is given in the contract.

(e) The CO will provide the executed contract to the successful offeror and shall provide written 

notice to the unsuccessful offerors that they did not receive the contract award.

9.1.16. Debriefings 

(a) All unsuccessful offerors, upon request, shall be debriefed and furnished the basis for the 

selection decision. Request for debriefing shall be made by the offeror by written request within 

three calendar days after receiving notice from the CO that the offeror did not receive award.

(b) Debriefings may be done verbally (including by telephone) or in writing by the CO who may 

request support from the evaluation team. The CO shall document the debriefing in the contract 

file.

(c) Pre-Award Debriefings.

 (1) A pre-award debriefing shall include:

 (i) The AOC’s evaluation of significant elements of the offeror’s proposal

 (ii) A summary of the rationale for eliminating the offeror from the competitive range

 (iii) Reasonable responses to relevant questions about the source selection process contained 

in the solicitation

 (2) A pre-award debriefing shall not disclose:

 (i) The number of offerors

 (ii) The identity of other offerors

 (iii) The contents of other offerors’ proposals

 (iv) The ranking of other offerors

 (v) The evaluation of other offerors

 (vi) Any comparison of offerors

(d) Post-Award Debriefings.

 (1) A debriefing after award shall include the following:

 (i) Significant deficiencies or weaknesses in the proposal

 (ii) Overall rating of the successful offeror and the debriefed offeror

 (iii) Past performance information on the debriefed offeror

 (iv) Rationale for award

 (v) Reasonable responses to questions on the source selection process contained in the 

solicitation

 (2) A debriefing after award is not:

 (i) A page-by-page analysis of the proposal

 (ii) A point-by-point comparison of proposals

 (iii) A debate over the award decision
AOC Order 34-1 Contracting Manual, July 14, 2022 110

 (iv) A release of any offeror’s proprietary information to other offerors

9.1.17. Mistakes After Award

When a mistake in the successful offeror’s proposal is discovered after award, it may be 

corrected by modifying the contract only if the correction is favorable to the AOC and if it does 

not change the essential requirements of the contract. In all other cases, the following procedures 

will be used:

(a) The CO will obtain evidence from the contractor to prove that a mistake was actually made 

and to show what the contractor intended to offer in the proposal.

(b) The CO will review the contractor’s documents to verify the mistake and to determine 

whether the contract should be modified, terminated or allowed to stand as written.

(c) The CO will consult with OGC.

(d) After reaching a decision, the CO will prepare a memorandum for the contract file that 

contains:

 (1) All evidence furnished by the contractor in support of the mistake

 (2) A summary of the evidence provided by the contractor and any additional pertinent 

evidence

 (3) A determination as to whether a mistake was made; if a mistake has been made, the CO will 

also analyze whether:

 (i) The effect of correcting the mistake would increase costs to the AOC, determine whether a 

revised contract would still represent the lowest offer, and any other relevant 

considerations

 (ii) Not correcting the mistake would affect the contractor’s ability to perform under the 

existing contract and the quality of the supply or service to be delivered

 (4) A discussion on the status of the contract in terms of performance, deliveries and payments

9.2. Sealed Bidding

9.2.1. Preparing an Invitation for Bids

(a) Sealed bidding is not the AOC’s preferred contracting method. However, sealed bidding may 

be used when:

 (1) Price is the only evaluation factor

 (2) Current and accurate purchase descriptions or specifications have been developed

 (3) Time permits the solicitation, submission and evaluation of bids

 (4) It is not necessary to conduct discussions with the respective bidders

 (5) There is a reasonable expectation of receiving more than one bid

(b) The following information should be included in an IFB:

 (1) Contract line item number

 (2) Description of supplies or services, or data sufficient to identify the requirement

(3) Quantity and unit of issue

 (4) Unit price and extended total amount

 (5) Packaging and marking requirements
AOC Order 34-1 Contracting Manual, July 14, 2022 111

 (6) Inspection and acceptance, quality assurance and reliability requirements

 (7) Place of delivery or performance, delivery dates or period of performance, and F.O.B. point

 (8) Other item-peculiar information, as necessary (for example, individual fund citations)

(9) Clauses required by this manual; additional clauses may be incorporated when considered 

necessary to a particular procurement

 (10) List of documents and attachments, as necessary

 (11) Representations and certifications

 (12) Instructions, conditions and notices

 (13) Basis for award

9.2.2. Bid Submission

(a) To be considered, bids shall be submitted to the designated delivery point in the IFBs not 

later than the exact date and time specified.

(b) COs may authorize electronic submission of bids. If electronic bids are authorized, the 

solicitation shall specify the electronic methods(s) that bidders may use.

9.2.3. Bidding Time

The CO in coordination with the Program Office and/or Project Manager will determine the 

appropriate bidding time consistent with the complexity of the requirement. Normally, 

solicitations should provide offerors 30 days to prepare their bids or offers.

9.2.4. Records of IFB and Abstract of Bids

(a) COs shall retain a record of each IFB and each abstract or record of bids. COs shall review 

and use information available in connection with subsequent acquisitions of the same or similar 

items.

(b) The IFB file shall show the distribution that was made and the date the IFB was issued. The 

names and addresses of prospective bidders who requested the IFB and were not included on the 

original solicitation list shall be added to the list and made a part of the record.

9.2.5. Release of Solicitation Mailing List

(a) The CO shall provide the IFB mailing list to the public upon written request.

(b) When IFBs for construction contracts have been issued, the IFB mailing list will be made 

available to trade journals, prospective subcontractors and material suppliers upon written 

request.

9.2.6. Pre-Bid Conference

(a) A pre-bid conference may be used to brief prospective bidders and explain complicated 

specifications and requirements as early as possible after the IFB has been issued and before bids 

are opened. It shall never be used as a substitute for amending a defective or ambiguous IFB.

(b) The CO shall decide if a pre-bid conference is required and make the necessary 

arrangements, including:

 (1) If notice of the pre-bid conference was not in the IFB, give all prospective offerors who 
AOC Order 34-1 Contracting Manual, July 14, 2022 112

received the solicitation adequate notice of the time, place, nature and scope of the 

conference

 (2) Prospective bidders must submit written questions in advance so the CO can deliver 

prepared answers during the conference

 (3) For technical and legal personnel to attend the conference, if appropriate

(c) The CO shall conduct the pre-bid conference, furnish all prospective bidders identical 

information concerning the proposed procurement, make a complete record of the conference, 

and promptly furnish a copy of that record to all prospective offerors by amendment. Attendees 

shall be advised that IFB terms and specifications remain unchanged unless the IFB is amended 

in writing.

9.2.7. Amending IFBs

(a) If it becomes necessary to make changes in quantity, specifications, delivery schedules, 

opening dates, or to correct a defective or ambiguous invitation, the CO shall amend the IFB 

using SF30. The fact that a change was mentioned at a pre-bid conference does not eliminate the 

necessity for issuing an amendment. Amendments shall be sent, before the time for bid opening, 

to all prospective bidders and/or posted on Contract Opportunities.

(b) Before amending an IFB, the time remaining until bid opening and the need to extend the 

time period shall be considered. When only a short time remains before the time set for bid 

opening, the CO may notify bidders of an extension by telephone or facsimile. Such extension 

must be confirmed by written amendment.

9.2.8. Cancellation of IFBs Before Opening

(a) IFBs should not be canceled unless cancellation is in the AOC’s best interest, such as:

 (1) Where there is no longer a requirement for the supplies or services

 (2) Where amendments to the IFB would be of such magnitude that a new IFB is desirable

(b) If an IFB is canceled, all offerors to whom the IFB was sent will be notified of the 

cancellation in writing. The cancellation notice shall identify the IFB by number and short title or 

subject matter and briefly explain why the IFB is being canceled. Bids received in response to 

the IFB will be returned unopened to the offerors. Bids received by electronic transmission shall 

be deleted from the primary and backup systems.

9.2.9. Late Bids, Late Modification of Bids or Late Withdrawal of Bids

(a) Bidders are responsible for submitting bids, and any modifications or withdrawals, so as to 

reach the AOC office designated in the IFB by the time specified in the IFB. They may use any 

transmission method authorized by the IFB (regular mail, electronic methods, courier, etc.). 

Acceptable evidence to establish the receipt time includes a time/date stamp, other documentary 

evidence of receipt maintained by the AOC, oral testimony or statements of AOC personnel.

(b) Any bid, modification or withdrawal of a bid received at the AOC office designated in the 

IFB after the exact time specified for receipt of bids is late. A late modification of an otherwise 

successful bid that makes its terms more favorable to the AOC will be considered at any time it 

is received and may be accepted. Any other late bids will not be considered unless: 
AOC Order 34-1 Contracting Manual, July 14, 2022 113

 (1) The bid was received before award is made

 (2) The CO determines that accepting the late bid would not unduly delay the acquisition and:

 (i) It was transmitted through an electronic method authorized by the IFB

 (ii) It was received at the AOC not later than 5 p.m. one working day before the date specified 

for receipt of bids

 (iii) There is acceptable evidence to establish that the bid was received at the AOC location 

designated for receipt of bids and was under the AOC’s control before the time set for 

receipt of bids

(c) If any emergency or unanticipated event interrupts normal AOC processes so that bids cannot 

be received at the AOC office designated for receipt of bids by the exact time specified in the 

IFB, and urgent AOC requirements preclude amendment of the bid opening date, the time 

specified for receipt of bids will be deemed to be extended to the same time of day specified in 

the IFB on the first work day on which normal AOC processes resume.

(d) Bids may be withdrawn by written notice received at any time before the exact time set for 

receipt of bids. If the IFB authorizes electronic methods, bids may be withdrawn at any time 

before the exact time set for receipt of bids. A bid may be withdrawn in person by a bidder or its 

authorized representative any time before the date and time set for receipt of bids.

9.2.10. Opening Bids

(a) At the time set for opening of the bids, the CO will publicly open all bids received. After 

opening, the bids will be recorded on an abstract of bids document and the abstract will be 

retained in the contract file.

(b) The time designated for the opening of bids may be postponed when:

 (1) A significant number of bids are known to have been delayed in the mail through no fault of 

the bidders

 (2) An emergency interrupts normal AOC operations

(c) The CO shall notify the OIG immediately if fraud or antitrust violations are suspected in the

bidding process.

9.2.11. Pre-Award Mistakes in Bids

(a) Examination of Bids. Before award, COs shall examine all bids for mistakes. In cases of 

apparent clerical mistakes and in cases where the CO believes a mistake may have been made, 

the CO shall request from the bidder a verification of the bid, calling attention to the suspected 

mistake.

(b) Clerical Mistakes.

(1) Any clerical mistake apparent on its face in the bid may be corrected by the CO before 

award. Examples include:

(i) Misplacing a decimal point

(ii) Incorrect discounts

(iii) Reversal of the price F.O.B. destination and price F.O.B. origin

(iv) Unit designation errors
AOC Order 34-1 Contracting Manual, July 14, 2022 114

 (2) Correcting the bid shall be effected by attaching the verification to the original bid and a 

copy of the verification to the duplicate bid. Correction shall not be made on the face of the 

bid; however, it shall be reflected in the award document.

9.2.12. Award

The award will be made to the lowest responsive and responsible bidder within any time limits 

that may have been set by the acceptance of the bids. The CO will issue a written notice of 

award. Contract types will be firm-fixed-price and fixed-price with EPA.

9.2.13. Award for Sealed Bidding Construction

The low offeror and the items to be awarded shall be determined as follows:

 (a) Before opening, the AOC will determine the amount of funds available for the project.

 (b) The low offeror shall be the offeror that:

 (i) Is otherwise eligible for award

 (ii) Offers the lowest aggregate amount for the first or base bid item, plus or minus (in the 

order stated in the list of priorities in the bid schedule) those additive or deductive items 

that provide the most features within the available funds

 (c) The CO shall evaluate all bids on the basis of the same additive or deductive items. If 

adding another item from the bid schedule list of priorities would make the award exceed 

the available funds for all offerors, the CO will skip that item and go to the next item from 

the bid schedule of priorities; and add that next item if an award may be made that includes 

that item and is within the available funds.

 (i) The CO will use the list of priorities in the bid schedule only to determine the low offeror. 

After determining the low offeror, an award may be made on any combination of items if it 

is in the AOC’s best interest, funds are available at the time of award, and the low offeror's 

price for the combination to be awarded is less than the price offered by any other 

responsive, responsible offeror.

(ii) Example: The amount available is $100,000. Offeror A’s base bid and four additives (in 

the order stated in the list of priorities in the bid schedule) are $85,000, $10,000, $8,000, 

$6,000 and $4,000. Offeror B’s base bid and four additives are $80,000, $16,000, $9,000, 

$7,000 and $4,000. Offeror A is the low offeror. The aggregate amount of offeror A’s bid 

for purposes of award would be $99,000, which includes a base bid plus the first and 

fourth additives. The second and third additives were skipped because each of them would 

cause the aggregate bid to exceed $100,000.

9.2.14. Mistakes After Award

(a) The mistake may be corrected by contract modification if:

 (1) Correcting the mistake would be favorable to the AOC without changing the essential 

requirements of the specifications

 (2) The contractor demonstrates by clear and convincing evidence that a mistake in bid was 

made. It must be clear that the mistake was mutual, or if unilaterally made by the contractor, 

so apparent as to have charged the CO with notice of the probability of the mistake. Each 

proposed determination shall be coordinated with legal counsel.
AOC Order 34-1 Contracting Manual, July 14, 2022 115

(b) After a mistake in bid, COs may decide:

 (1) To rescind a contract

 (2) To modify a contract, deleting the items involved in the mistake or increasing the price if 

the contract price, as corrected, does not exceed that of the next lowest acceptable bid under 

the original IFB

 (3) That no change shall be made in the contract as awarded if the evidence does not warrant 

deleting the items or increasing the price

(c) Mistakes alleged or disclosed after award shall be processed as follows:

 (1) The CO shall request a written statement and pertinent evidence of the contractor’s bid, 

including:

 (i) The contractor’s original worksheets and other data used in preparing the bid

 (ii) Subcontractors’ and suppliers’ quotations, if any

 (iii) Published price lists

 (iv) Any other evidence that will serve to establish the mistake, the manner in which the 

mistake occurred and the bid actually intended

 (2) The CO shall write a determination memorandum:

 (i) Describing the supplies or services involved

(ii) Explaining how and when the mistake was alleged or disclosed

(iii) Summarizing the evidence submitted by the contractor and any additional evidence 

considered pertinent

(iv) Quoting, in cases where only one bid was received, the most recent contract price for the 

supplies or services involved, or in the absence of a recent comparable contract, the CO’s 

estimate of a fair price for the supplies or services and the basis for the estimate

(v) Setting forth the CO’s opinion as to whether a bona fide mistake was made and whether 

the CO was, or should have been, on notice of the mistake before the award

(vi) Setting forth the course of action that the CO considers proper on the basis of the 

evidence, with respect to the alleged mistake, and, if other than a change in contract price 

is recommended, the manner by which the supplies or services will otherwise be acquired

 (3) The contract file shall contain the following concerning the mistake: 

(i) Contemplated performance and payments

(ii) A signed copy of the bid involved

(iii) A copy of the IFB and any specifications or drawings relevant to the alleged mistake

(iv) An abstract or written record of the bids received

(v) A written request by the contractor to reform or rescind the contract

(vi) Copies of all other relevant correspondence between the CO and the contractor

concerning the alleged mistake

(vii) A copy of the contract and any related change orders or supplemental agreements

9.3. Two-Step Sealed Bidding

(a) Two-step sealed bidding is a combination of competitive procedures designed to obtain the 

benefits of sealed bidding when adequate specifications are not available. The objective is to 

develop a sufficiently descriptive and not unduly restrictive statement of the AOC’s 

requirements, including an adequate technical data package. This method is useful in acquisitions 

requiring technical proposals or for complex items. It is conducted in two steps as follows:
AOC Order 34-1 Contracting Manual, July 14, 2022 116

 (1) Step one is requesting, submission, evaluation and (if necessary) discussion of a technical 

proposal without pricing. This step is to determine whether the supplies or services are 

acceptable. The word technical has a broad connotation and includes, among other things, 

engineering approach, special manufacturing processes and special testing techniques. It is 

the proper step for clarifying questions relating to technical requirements. Conformity to the 

technical requirements is resolved in this step, but not a responsibility determination.

 (2) Step two involves submitting sealed priced bids by offerors who submitted acceptable 

technical proposals in step one. Bids submitted in step two are evaluated and the awards are 

made in accordance with evaluation factors stated in the IFB.

9.4. Unsolicited Proposals

(a) An unsolicited proposal is a written proposal that is submitted to the AOC on the initiative of 

a vendor for the purpose of obtaining a contract with the AOC and which is not in response to a 

formal or informal request. Advertising material, commercial product offers, gifts or technical 

correspondence are not unsolicited proposals. Unsolicited proposals may be a valuable means of 

obtaining innovative or unique methods or approaches to accomplishing a function or task; 

however, AOC personnel are cautioned not to encourage potential contractors to submit such 

proposals. All unsolicited proposals will be forwarded to the contracting office for coordination, 

receipt, evaluation and disposition. The contracting office will, in turn, refer the unsolicited 

proposal to appropriate technical personnel for evaluation. However, if the unsolicited proposal 

is not related to the AOC’s mission, it need not be evaluated.

(b) The criteria below will be considered in evaluating an unsolicited proposal. A valid 

unsolicited proposal must:

 (1) Be innovative and unique

 (2) Be independently originated and developed by the offeror

 (3) Be prepared without AOC or government personnel supervision

 (4) Include sufficient detail to permit a determination of how the AOC would benefit

 (5) Not be an advance proposal for a known AOC requirement that can be acquired by 

competitive methods

(c) Contents of a valid unsolicited proposal should include:

 (1) Offeror’s name, address and the type of organization (for example, profit, nonprofit or 

educational)

 (2) Names and telephone numbers of technical and business personnel to be contacted for 

evaluation or negotiation purposes

 (3) Identity of proprietary data to be used for evaluation purposes only

 (4) Submission date

 (5) Signature of authorized agent to represent and contractually obligate the offeror

 (6) Technical information, which should include a concise title or description and an abstract of 

the proposed effort

 (7) A reasonably complete discussion (abbreviated statement of work) stating the objectives of 

the effort or activity, the method of approach and the nature and extent of the effort to be 

employed, the nature and extent of the anticipated results, and the manner in which the work 

will help to support accomplishment of the AOC’s mission
AOC Order 34-1 Contracting Manual, July 14, 2022 117

 (8) Names and biographical information on the offeror’s key personnel who would be 

involved

(9) Type of support needed from the AOC (for example, facilities, equipment, materials or 

personnel resources)

 (10) Supporting information, which may include:

 (i) Proposed price or total estimated cost for the effort in sufficient detail for meaningful 

evaluation

 (ii) Period of time for which the proposal is valid (a six month minimum is suggested).

 (iii) Type of contract

 (iv) Duration of proposed effort

 (v) Brief description of the organization, previous experience in the field and facilities to be 

used

 (vi) Required statements, if applicable, about organizational conflicts of interest, security 

clearances and environmental impacts

(d) A noncompetitive contract may be awarded for unsolicited proposals upon a determination 

by the CO that:

 (1) The standards describe above have been met

 (2) Funding for award of the contract, if applicable, is available

 (3) Services cannot be obtained through competitive acquisition methods

(e) Obtain OGC review before proceeding with execution of a contract resulting from an 

unsolicited proposal.

9.5. Acquisition of Commercial Products / Services

For acquisitions of commercial products / services exceeding the competition threshold but not 

exceeding $6.5 million, including options, COs may use the following procedures to the 

maximum extent practicable:

(a) COs shall:

 (1) Conduct market research to determine whether commercial products / services are available 

that could meet the agency’s requirements

 (2) Acquire commercial products / services when they are available to meet the agency’s need

 (3) Require prime contractors and subcontractors at all tiers to incorporate, to the maximum 

extent practicable, commercial products / services as components of items supplied to the 

agency

(b) As appropriate for the particular commercial products / services acquisition, COs shall use 

the policies in the CM in conjunction with policies and procedures for solicitation, evaluation 

and award prescribed for regarding simplified acquisition procedures; sealed bidding; or 

negotiated acquisitions:

(1) When a written solicitation will be issued, the CO may reduce the time required to solicit 

and award contracts by combining the synopsis and the issuance of the solicitation into a 

single document. The CO shall include the following additional information in the 

synopsis:

(i) This is a combined synopsis/solicitation for commercial products / services as 

supplemented with additional information included in this notice. This announcement 
AOC Order 34-1 Contracting Manual, July 14, 2022 118

constitutes the only solicitation; proposals are being requested and a written solicitation 

will not be issued

(ii) The solicitation number and a statement that the solicitation is issued as an RFQ, an IFB 

or an RFP

(iii) A notice regarding any set-aside and the associated NAICS code and small business 

size standard

(iv) A list of contract line item number(s) and items, quantities and units of measure, 

(including option(s), if applicable)

(v) Description of requirements for the items to be acquired

(vi) Date(s) and place(s) of delivery and acceptance and F.O.B. point

(vii) A statement regarding any additional contract requirement(s) or terms and conditions 

(such as contract financing arrangements or warranty requirements) determined by the 

CO to be necessary for this acquisition and consistent with customary commercial

practices

(viii) A statement regarding the DPAS and assigned rating, if applicable

(ix) The date, time and place offers are due

(x) The name and telephone number of the individual to contact for information regarding 

the solicitation

(2) The CO shall allow response time for receipt of offers as follows:

(i) Because the synopsis and solicitation are contained in a single document, it is not 

necessary to publicize a separate synopsis 15 days before the issuance of the 

solicitation

(ii) When using the combined synopsis and solicitation, COs must establish a reasonable 

response time by considering the circumstances of the individual acquisition, such as 

the complexity, commerciality, availability and urgency

(3) The CO shall publicize amendments to solicitations in the same manner as the initial 

synopsis and solicitation

(c) When a policy in another section of this CM is inconsistent with a policy in this section, this 

section shall take precedence for the acquisition of commercial products/services.

(d) Exclusions. This section shall not apply to the acquisition of commercial products / services:

(1) At or below the competition threshold

(2) When using the government purchase card

(3) When purchasing requirements directly from another federal agency

(e) The description of the requirement must contain sufficient detail for potential offerors of 

commercial products / services to know which commercial products or services may be suitable. 

Generally, for acquisitions in excess of the competition threshold, the agency’s statement of need 

for a commercial products / services will describe the type of product or service to be acquired 

and explain how the agency intends to use the product or service in terms of function to be 

performed, performance requirement or essential physical characteristics. Describing the 

agency’s needs in these terms allows offerors to propose methods that will best meet the needs of 

the government.
AOC Order 34-1 Contracting Manual, July 14, 2022 119

(f) Where technical information is necessary for evaluation of offers, COs shall review existing 

product literature generally available in the industry to determine its adequacy for purposes of 

evaluation. If adequate, COs shall request existing product literature from offerors of commercial 

products / services in lieu of unique technical proposals.

(g) COs should allow offerors to propose more than one product that will meet a government 

need in response to solicitations for commercial products / services. The CO shall evaluate each 

product as a separate offer.

(h) Past performance should be an important element of every evaluation and contract award for 

commercial products / services. COs should consider past performance data from a wide variety 

of sources both inside and outside the federal government.

(i) Commercial products / services contracts shall rely on contractors’ existing quality assurance 

systems as a substitute for government inspection and testing before acceptance unless 

customary market practices for the commercial products / services being acquired include inprocess inspection. Any in-process inspection by the government shall be conducted in a manner 

consistent with commercial practice.

(j) It is a common practice in the commercial marketplace for both the buyer and seller to 

propose terms and conditions written from their particular perspectives. The terms and 

conditions prescribed in this section seek to balance the interests of both the buyer and seller. 

These terms and conditions are generally appropriate for use in a wide range of acquisitions. 

However, market research may indicate other commercial practices that are appropriate for the 

acquisition of the particular item. These practices should be considered for incorporation into the 

solicitation and contract if the CO determines them appropriate in concluding a business 

arrangement satisfactory to both parties and not otherwise precluded by law.

(k) Offers shall be evaluated in accordance with the criteria contained in the solicitation. For 

many commercial products / services, the criteria need not be more detailed than technical 

(capability of the item offered to meet the agency need), price and past performance. Technical 

capability may be evaluated by how well the proposed products meet the government 

requirement instead of predetermined subfactors. Solicitations for commercial products / services

do not have to contain subfactors for technical capability when the solicitation adequately 

describes the item’s intended use. A technical evaluation would normally include examination of 

such things as product literature, product samples (if requested), technical features and warranty 

provisions. Past performance shall be evaluated in accordance with the procedures contained in 

this CM, as applicable. The CO shall select the offer that is most advantageous to the 

government based on the factors contained in the solicitation and fully document the rationale for 

selection of the successful offeror including discussion of any trade-offs considered.
AOC Order 34-1 Contracting Manual, July 14, 2022 120

CHAPTER X. PROTESTS

10.1. Definitions

(a) Interested Party. An interested party is an actual or prospective bidder or offeror whose direct 

economic interest would be affected by the award of a contract or by the failure to award a 

contract.

(b) Protest. A protest is a written objection by an interested party to a solicitation, cancellation of 

a solicitation, award or proposed award of a contract or termination of a contract if terminated 

due to alleged improprieties in the award.

10.2. Forum for Protest

An interested party may protest to the agency or the GAO. 

10.3. Procedures 

(a) Agency Protests. Agency protests shall be filed with the CO. 

 (1) Protests shall include the following information:

(i) Name, address and telephone numbers of the protester

(ii) Solicitation or contract number

(iii) Detailed statement of the legal and factual grounds for the protest, to include a 

description of resulting prejudice to the protester

(iv) Copies of relevant documents

(v) Request for a ruling by the agency

(vi) Statement as to the form of relief requested

(vii) All information establishing that the protester is an interested party for the purpose of 

filing a protest

(viii) All information establishing the timeliness of the protest

 (2) Timing.

(i) Protests based on alleged apparent improprieties in a solicitation shall be filed before bid 

opening or the closing date for receipt of proposals

(ii) In all other cases, protests shall be filed no later than 10 calendar days after the basis of 

protest is known or should have been known, whichever is earlier

(b) GAO Protests. Although GAO protests do not apply to the AOC by law, the AOC voluntarily 

allows GAO to hear its bid protests. GAO protests shall be filed in accordance with the GAO 

rules.
AOC Order 34-1 Contracting Manual, July 14, 2022 121

CHAPTER XI. EMERGENCY PROCUREMENTS

11.1. General Information

(a) This chapter identifies acquisition flexibilities that are available only under prescribed 

circumstances and available for emergency procurements. These flexibilities include specific 

techniques or procedures available to streamline standard acquisition rules and standard 

contracting process. This chapter covers the emergency acquisition of supplies, services 

(including A/E) or construction to support:

 (1) A military operation designated by the Secretary of Defense in which members of the armed 

forces are or may become involved in military actions, operations or hostilities against an enemy 

of the United States or against an opposing military force; or results in the call or order to, or 

retention on, active duty of members of the uniformed services during a war or during a national 

emergency declared by the President or Congress

 (2) The defense against or recovery from cyber, nuclear, biological, chemical or radiological 

attack

 (3) A presidential emergency declaration, or a major disaster declaration

 (4) An emergency declaration by the Capitol Police Board

11.2. Definition.

(a) Emergency means any occasion for which, in the determination of the Chief DCA or Chief 

SSMMD, as applicable, a procurement may be pursued in accordance with CM §11.1 to save 

lives and to protect property and public health and safety, or to lessen or avert the threat of a 

catastrophe within facilities and properties under the responsibility of the AOC.

11.3. Flexibilities.

(a) When the Chief DCA or Chief SSMMD, as applicable determines that an emergency 

procurement may move forward, the following flexibilities are permitted without additional 

documentation normally prepared, executed and place in the contract file using standard 

acquisition rules:

 (1) Jurisdictions/organizations shall develop SOW or specifications with as much detail as 

possible that can be used to solicit emergency requirements.

 (2) COs shall consider using the DPAS that supports approved national defense, emergency 

preparedness and energy programs and was established to facilitate rapid industrial mobilization 

in case of a national emergency.

 (3) Written APs are waived.

 (4) Mandatory use of required sources is waived.

 (5) The small business set-aside for purchases below the Small Purchase Threshold is waived.

 (6) COs need not advertise the emergency procurement opportunity and may limit the number 

of sources competing or award sole source/brand name contracts.

 (7) Oral and letter RFQs and RFPs may be used. These solicitations should be as complete as 

possible and, at a minimum, should contain the following:

(i) RFQ/RFP number and date

(ii) Name, address and telephone number of the CO

(iii) Type of contract contemplated

(iv) Quantity, description and required delivery dates for the item

(v) Anticipated contract terms and conditions

(vi) Quote or proposal due date and time
AOC Order 34-1 Contracting Manual, July 14, 2022 122

(vii) Any other relevant information

 (8) Letter contracts may be used when contract performance must begin immediately.

 (9) Requirements to obtain a bid guarantee for emergency acquisitions may be waived when a 

performance bond or a performance bond and payment bond is required.

 (10) Contractors are not required to be registered in SAM at the time of submission of offers or 

quotations however, they shall be registered in SAM before contract completion or submission of 

the first payment invoice, whichever is sooner.

 (11) Any determination not referenced in this chapter may be made after contract award when 

making the determination before award would unreasonably delay the acquisition.

(b) COs shall maintain complete records of all actions taken under this chapter and create the 

proper contract file as soon as possible.

(c) Except as provided in this chapter, AOC contracting policies will still be in effect during an 

emergency.

11.4. Availability of the Financial Management System

(a) If FMS is accessible, jurisdictions/organizations shall submit requisitions or make purchase 

card transactions using the normal FMS procedures.

(b) If FMS is not accessible, funding authorization from the OCFO shall be obtained and 

provided to the CO. An OCFO email authorizing funding email is sufficient with a copy of the 

email placed in the contract file. COs shall maintain records to track the acquisition to recreate 

the transactions and account for expenditures when FMS becomes accessible. When FMS 

becomes accessible, an FMS purchase requisition shall be established and approved in the usual 

manner.

11.5. Use of Purchase Cards

Purchase cards may be used for emergency purchases. In an emergency, the APC may increase a 

cardholder’s single transaction purchase card limit. Requests for increases, including a 

justification for the increase and the cardholder’s name, must be made in writing to the APC. An 

official with budget authority in the jurisdiction/organization must provide the funding to place a 

purchase card transaction.
AOC Order 34-1 Contracting Manual, July 14, 2022 123

CHAPTER XII. PRICING OF CONTRACT ACTIONS

12.1. Cost and Price Analysis

The primary components of price are cost plus any fee or profit. The AOC’s primary pricing 

objective for all contract actions is to acquire supplies and services from responsible sources at 

fair and reasonable prices. The CO’s primary objective in pricing a contract action is to consider

the contract type, cost and profit or fee negotiated to obtain a price that is fair and reasonable to 

both parties. To obtain this objective, the CO can use three approaches: price analysis, cost 

analysis and cost realism analysis.

(a) Price Analysis. Price analysis determines whether the overall contract price is fair and 

reasonable without evaluating its separate cost elements and proposed profit. All AOC 

procurements shall use price analysis to ensure that the agency receives supplies and services at a

fair and reasonable price unless the CO provides a written justification in the contract file 

providing the rationale for using another approach to reach a fair and reasonable price.

 (1) Price analysis involves a comparison with other prices, such as with:

(i) Commercial prices, including competitive published price lists, published commodity 

market prices, similar indices and discount or rebate arrangements

(ii) Previously proposed prices and contract prices for the same or similar end items

(iii) Parametric estimates

(iv) IGEs

(v) Market research for the same or similar items

(vi) Analyzing the offeror’s pricing information

(vii) Proposed prices received in response to the solicitation

 (2) Price analysis is a subjective evaluation, the CO must be satisfied that the price is fair and 

reasonable. The CO must document the price analysis rationale in the contract file with 

appropriate supporting information provided by the COR, and/or other specialists.

 (3) The CO may request a technical analysis of the proposed prices from personnel (such as the 

COR) having specialized knowledge, skills, experience or capability in engineering, science

or management. The technical analysis will be performed on the proposed types and 

quantities of materials, labor processes, special tools, facilities, scrap and spoilage and other 

associated factors set forth in the proposal(s) to determine the need for and reasonableness 

of the proposed resources. 

(b) Cost Analysis. Cost analysis determines whether the underlying contract costs are fair and 

reasonable. Cost analysis must be used in addition to price analysis when: 

 (1) Evaluating proposals for cost type contracts

 (2) An offeror is required to submit cost or pricing data; in this situation, the offeror must 

provide complete, accurate and current data to support all proposed costs and profit/fee

 (3) An offeror is required to submit cost information other than cost or pricing data to support 

the CO’s decision on price reasonableness or cost realism

(c) Cost Realism Analysis.

 (1) Cost realism analysis is the process of independently reviewing and evaluating specific 

elements of the offeror’s proposed cost estimate to determine whether the estimated 

proposed cost elements:
AOC Order 34-1 Contracting Manual, July 14, 2022 124

 (i) Are realistic for the work to be performed

 (ii) Reflect a clear understanding of the requirements

 (iii) Are consistent with the unique methods of performance and materials described in the 

offeror’s technical proposal

 (2) Cost realism analysis is performed in addition to pricing analysis on each cost

reimbursement contract action to determine the probable cost of contract performance and 

uses that estimate to evaluate the best value to the government.

12.2. Unbalanced Pricing

(a) Unbalanced pricing exists when, despite an acceptable total evaluated price, the price of one 

or more contract line items is significantly over or understated, as indicated by applying cost or 

price analysis techniques.

(b) Issues with unbalanced pricing include:

 (1) Increased contract performance risk

 (2) Result in essentially advance payments for work not yet performed

 (3) Result in paying unreasonably high prices

(c) This risk is normally greatest when:

 (1) Startup work, mobilization, first articles or first article testing are separate line items

 (2) Base and option quantities are separate line items

 (3) The evaluated price is the aggregate of estimated quantities to be ordered under separate line 

items of an indefinite-quantity contract

(d) The CO may reject an offer if the unbalanced pricing results in a materially unbalanced offer 

that poses an unacceptable risk to the AOC. An offer is materially unbalanced if it is based on 

prices that are significantly less than cost for some line items and significantly more than cost for 

other line items.

12.3. Price Reasonableness Documentation

(a) Written documentation that the price is fair and reasonable is required for each contract 

action exceeding $10,000 however, all AOC purchases shall be made at a fair and reasonable 

price.

(b) Examples of techniques to establish price reasonableness include, but are not limited to:

 (1) Comparison. Historical prices found reasonable on other purchases for the same or similar 

items. Reference to the previous contract shall be made in the contract file.

 (2) Competition. Comparison of proposed prices received in response to the solicitation. 

Normally, adequate price competition establishes a fair and reasonable price.

 (3) Price Lists. Comparison with competitive published price lists, published market prices of 

commodities, similar indexes and discount or rebate arrangements.

 (4) Use of the IGE. Comparison of proposed prices with the IGE.

 (5) Market Research. Comparison of proposed prices with prices obtained through market 

research for the same or similar items.

(c) In addition to those items noted above, if the contract is negotiated, the following information 
AOC Order 34-1 Contracting Manual, July 14, 2022 125

is required to be contained in the contract file:

 (1) The name and title of each person representing the government

 (2) The name and title of each person representing the offeror

 (3) The date of negotiations

 (4) The negotiated positions

 (5) The CO’s signature
AOC Order 34-1 Contracting Manual, July 14, 2022 126

CHAPTER XIII. CONTRACT ADMINISTRATION

13.1. General Guidelines

13.1.1. Overview

(a) Contract Administration is the management of a contract from the time of award through its 

expiration and close out. The purpose of contract administration is to ensure that the contractor 

performs according to the contract; to ensure the CO does not waive any AOC rights; to ensure 

that the AOC receives the quantity and quality of the supplies, services or construction procured 

in the contract; and to develop a record of the contractor’s past performance. The types of 

activities included in contract administration are issuing contract modifications, monitoring 

contract deliveries and performance, reviewing the contractor’s invoices for payment and closing 

out the contract. The terms and conditions of the contract are used as the guidance in performing 

these tasks.

(b) Site Visits. COs or contract administrators shall perform site visits as necessary to ensure 

satisfactory contract performance and document the site visit in the contract file.

13.1.2. COR

(a) A CO may appoint an AOC employee as a COR on a designated contract. CORs are 

responsible for monitoring performance to assure that it is in accordance with the written terms 

and conditions of the award. The CO will ensure and document that the individual selected is 

trained and possesses the qualifications and experience necessary to perform the function. A 

copy of the COR training certificate must be maintained on record in the contracting office

master COR file. CORs shall maintain current skills and knowledge required to perform effective 

contract administration functions and ensure contractors meet their contractual obligations.

Employees who are selected for appointment as CORs, or who are likely to be selected, must 

comply with the following training requirements:

 (1) Before appointment by the CO, a COR shall complete a 40-hour COR training course.

 (2) All CORs shall complete an eight-hour COR refresher course within five years of the 

anniversary date of completing their initial 40-hour COR training course. Upon completion 

of a COR refresher course, the COR shall take an additional refresher course within every 

five years thereafter.

 (3) Any other specific training as required and determined necessary by the jurisdiction/office 

to meet the needs of the particular contract being administered.

 (4) The Chief DCA or Chief SSMMD, as applicable, is authorized to approve equivalencies or 

substitutions to the COR training requirements stated above.

(b) A COR appointment will be made in writing and designated by name and title of position. 

Each appointment letter will set forth the authority and limitations applicable to the COR. The 

COR is not empowered to issue, authorize, agree to or sign any contract or modification or in 

any way obligate the payment of funds by the AOC.

(c) COs shall perform COR file audits annually to review COR records and assess performance 

of post-award administration duties. The number of individual CO contracts audited will be 

determined by management based on a review of workload and staffing levels.
AOC Order 34-1 Contracting Manual, July 14, 2022 127

 (1) The COR Review Checklist shall be used by all staff to ensure proper COR performance of 

post-award administration duties. A COR File Checklist is available for staff use and can be 

found on the AOC shared network.

 (2) Complete the COR Review Checklist in accordance with the information on the form.

 (i) In the blocks provided, check off items as applicable.

 (ii) Staff shall complete an entry for each row of the checklist noting not applicable (n/a) 

where appropriate.

 (iii) Staff shall add rows to the checklist as needed to capture tasks relevant to specific COR

post-award administrative duties applicable to the procurement.

 (3) The completed COR Review Checklist shall be placed in the contract file.

13.1.3. Post-Award Conference

(a) A post-award conference aids both the AOC and contractor to achieve a clear and mutual 

understanding of all contract requirements and identify and resolve potential problems. However, 

it is not to be used to substitute for the contractor’s full understanding of the work requirements 

at the time the offers are submitted or alter the final agreement arrived at in any negotiations 

before contract award. The CO shall decide if a post-award conference is required based on the:

 (1) Type, value and complexity of the contract

 (2) Complexity and acquisition history of the product or service

 (3) Urgency of the delivery schedule

 (4) Contractor’s performance history and experience with the product or service

 (5) Safety precautions required for hazardous materials or operations

(b) All construction contracts shall use a post-award conference. The CO, consulting with the 

COR, shall establish the agenda and prepare the post-award conference report that covers all 

items discussed and the participants. The post-award conference report shall be distributed to all 

involved participants.

13.1.4. Contract Modifications

(a) COs acting within the scope of their authority may issue contract modifications. Other AOC 

or government personnel shall not execute contract modifications or act in a manner as to cause 

the contractor to believe they have the authority to bind the AOC. All modifications will be in 

writing using SF30. 

(b) There are two types of contract modifications: 

(1) Unilateral. A unilateral modification is a contract modification that is signed by the CO

only. Unilateral modifications are used to make administrative changes, issue change orders 

under the changes clause, make changes authorized by other contract clauses (options) and 

issue termination notices.

 (2) Bilateral. Bilateral modifications (supplemental agreements) are contract changes requiring 

mutual consent by both the CO and the contractor. The CO signs bilateral modifications 

after the contractor has signed. Bilateral modifications are used to:

 (i) Make negotiated equitable adjustments as a result of issuing a change order under the 

changes clause, including constructive changes; for an equitable adjustment, the CO will 

make a written determination that the new price is fair and reasonable
AOC Order 34-1 Contracting Manual, July 14, 2022 128

 (ii) Reflect other agreements that change the contract terms

(c) Supplemental agreements may not be used to expand an existing contract to include 

additional work beyond the scope of the original contract. Additional work must be clearly 

documented and shall include a determination that the work was not contemplated at the time of 

the original contract and is such an inseparable part of the work originally contracted for as to 

render it prohibitively difficult to be performed by other than the original contractor. 

(d) When preparing contract modifications, COs shall ensure that the appropriate authority is 

cited which permits the modification. All modifications must include:

 (1) Contract Summary of Changes

 (2) Contractor’s Statement of Release, when applicable

13.1.5. Change Orders

(a) AOC contracts may contain a Changes clause that permits the CO to make unilateral changes

within the contract scope. The contractor must continue performance of the contract as changed. 

The CO must make a written determination that using the Changes clause is appropriate.

(b) The Changes clause provides for an equitable adjustment if the change causes an increase or 

decrease in cost or performance time. If the change order contains a price for the change, the 

change requires a supplemental agreement reflecting the resulting equitable adjustment in the 

contract terms. If the change order is not priced, the change requires the change order and a 

supplemental agreement reflecting the resulting equitable adjustment.

(c) COs will negotiate equitable adjustments resulting from change orders as promptly as 

possible (preferably less than 30 days after issuing the change order). The negotiated equitable 

adjustment will be based on both the AOC’s and contractor’s estimated cost for the proposed 

price adjustment. If additional funds are required as a result of the change, the CO will obtain a 

certification of available funds before issuing the supplemental agreement.

13.1.6. Constructive Changes

Constructive changes are government action or inaction that imposes a change in the contract 

terms, but does not do so formally (i.e., under the Changes clauses or a supplemental agreement). 

Such changes entitle the contractor to relief under the Changes clause. Constructive changes can 

be the result of the AOC:

 (1) Requiring the contractor to meet a delivery date despite an excusable delay

 (2) Furnishing defective specifications

 (3) Misinterpreting the contract

 (4) Requiring a more thorough inspection than prescribed in the contract

13.1.7. Contractor Delivery and Performance

(a) Contractor noncompliance may be detected through quality inspections, customer complaints 

or contractor failure to comply with delivery schedules, performance standards or other contract 

provisions. The CO must be made aware of noncompliance with the contract to correct the 

deficiencies, follow through with required action until resolved and document the deficiency in 

the contract file. It is the COR’s responsibility to promptly notify the CO, in writing, any time 
AOC Order 34-1 Contracting Manual, July 14, 2022 129

contractor performance is not in compliance with the contract. 

(b) Delays in Delivery or Performance.

 (1) Excusable delays are due to causes beyond the contractor’s control. For excusable delays, 

the CO may extend the delivery schedule by a bilateral contract modification. If the supplies 

are needed before the contractor can deliver, the contract may be terminated for

convenience.

 (2) Inexcusable delays are contractor caused. The CO shall consult with OGC and conduct a 

thorough analysis of the situation and possible courses of action to determine the most 

efficient and economical resolution. If the delivery schedule can be extended, this shall be 

done by a bilateral contract modification, which extends the delivery schedule and may 

provide for a price reduction or other consideration. 

13.1.8. Exercising Options

(a) When exercising an option, the CO shall provide written notice to the contractor within the 

time period specified in the contract.

(b) When the contract provides for economic price adjustment and the contractor requests a price

adjustment, the CO shall determine the effect of the price adjustment before the option is 

exercised.

(c) The CO may exercise options only after determining that:

 (1) Funds are available

 (2) The requirement covered by the option fulfills an existing government need

 (3) Exercising the option is the most advantageous method of fulfilling the government's need

 (4) One of the following bases for exercising an option apply:

(i) A new solicitation fails to produce a better price or a more advantageous offer than the 

option

(ii) An informal price analysis or market research indicates that the option price is better than 

market prices or that the option is the more advantageous offer

(iii) The time between contract award and the exercise of the option is so short that it indicates 

the option price is the lowest price or the more advantageous offer. The CO shall consider

factors such as market stability and the usual contract duration for such supplies or 

services

13.1.9. Suspension of Work and Stop Work Orders

(a) During contract performance, the AOC may need to suspend or stop work. The CO is the 

only official authorized to suspend or stop a contractor’s work. The CO shall include the 

appropriate clauses for suspension and stop work orders in solicitations and contracts as needed.

 (1) The CO may order a suspension of work under a construction or A/E contract for a 

reasonable period of time. If the suspension is unreasonable, the contractor may submit a 

written claim for any cost increase (excluding profit) incurred because of the suspension.

 (2) The CO may issue a stop-work order in any fixed-price supply or service contract when the 

CO determines it is appropriate. Work stoppage may be required for state-of-the-art 

advancements, engineering breakthroughs and realignment of programs.
AOC Order 34-1 Contracting Manual, July 14, 2022 130

(b) A stop-work order will be issued only if it is advisable to stop work pending an AOC 

decision and a bilateral modification providing for a suspension of work is not feasible. Issuing a 

stop-work order shall be approved at a minimum one level higher than the CO. Stop-work orders 

shall not be used in place of a termination notice after a decision to terminate has been made.

 (1) Stop-work orders will include the following elements:

(i) A description of the work to be stopped

(ii) Instructions concerning the contractor’s ordering additional supplies or services

(iii) Instructions to the contractor concerning any action to be taken on subcontracts

(iv) Direction to the contractor concerning minimizing costs, since the AOC may be required 

to pay the contractor an equitable adjustment

 (2) As soon as possible after a stop-work order has been issued, the CO will discuss the stopwork order with the contractor and make any necessary modifications

 (3) As soon as possible after a stop-work order has been issued and before it expires, the CO

will:

(i) Terminate the contract

(ii) Cancel the stop-work order, with approval one level above the CO

(iii) Extend the stop-work order by a bilateral modification, if necessary

13.2. Contract Terminations

13.2.1. General

(a) The Termination clauses authorize COs to partially or totally terminate contracts for 

convenience or for default and to enter into settlement agreements. If the price of the undelivered 

balance is less than the termination cost, normally the contract should not be terminated, but

completed.

(b) The CO shall document the reasons for any termination in the contract file.

13.2.2. Termination for Convenience

(a) The CO has the authority to partially or totally terminate a contract for convenience when it is 

in the AOC’s best interest. The CO shall not exercise the authority to terminate a contract for 

convenience until approval is obtained from the requiring activity. Terminations for convenience 

are normally exercised when the AOC no longer has a need for the requirement.

(b) The CO will send written notification to the contractor as soon as possible after the

termination decision is made. The CO will obtain written acknowledgment of the notification 

from the contractor. The written notice will contain the effective date of termination, details of 

the termination and the line items terminated.

(1) The CO will simultaneously send the termination notice to any known assignee, guarantor 

or surety contractor.

(2) The CO may amend a termination notice to add supplemental data or instructions or rescind 

the notice if it is determined that items terminated were completed or shipped before the 

contractor received the notice.

(c) Settlement.

 (1) If a contract must be terminated for convenience, the CO will attempt to terminate the 
AOC Order 34-1 Contracting Manual, July 14, 2022 131

contract on a no-cost basis to either party. 

 (2) If a no-cost settlement is not possible, the contractor must submit a claim to the CO, in 

writing within one year of the termination notice. The contractor has the burden to establish 

the proposed settlement amount. 

 (i) A termination settlement should compensate the contractor fairly for the work done and 

the preparations made for the terminated portions of the contract, if any, including a 

reasonable allowance for profit to the date of termination

 (ii) The CO should use a variety of methods to reach a settlement such as a cost or price 

analysis. The CO, in negotiating a settlement, will use sound business judgment and 

consult with OGC

(iii) If the parties cannot reach a settlement, the CO will make a final decision concerning the 

claim, in writing, and notify the contractor in a timely manner, usually within 60 days. 

Any dispute arising as a result of this process will be resolved using the AOC Disputes 

Clause inserted into the contract using the Matrix Checklist in effect at the time of 

solicitation

13.2.3. Termination for Default

(a) The CO has the authority to terminate a contract for default because of the contractor’s actual 

or anticipated failure to perform its obligations under the contract. Such failure includes the 

failure to deliver at the required time, failure to make necessary progress as to endanger 

performance, and failure to perform any of the other provisions of the contract. The right to 

terminate for default should only be exercised after careful review by the CO, technical 

personnel and OGC. 

 (b) The notice requirement for a termination for default is the same as that for a termination for 

convenience. Additionally, normally a show cause or a cure notice is provided before the 

termination notice; however, they are not required when circumstances indicate the need for 

immediate termination. Notices shall be issued by certified mail, return receipt requested.

 (1) Cure Notice. A cure notice is a notice issued by the AOC to inform the contractor that the 

government considers the contractor’s failure a condition that is endangering contract 

performance. The cure notice specifies a time period (typically 10 days) for the contractor to 

remedy the condition. If the contractor does not correct the condition, the notice states that 

the contractor may face termination of its contract for default. 

 (2) Show Cause Notice. A show cause notice is a notice issued by the AOC that the AOC 

intends to terminate for default unless the contractor shows cause why the contract should 

not be terminated. Show cause notices are generally used if there is insufficient time 

remaining in the delivery schedule to allow a cure period. 

(c) The CO will consider the following factors in determining whether to terminate a contract:

 (1) Terms of the contract and applicable laws and orders

 (2) Specific failures of the contractor and other sources

 (3) Availability of supplies and services from other sources

 (4) Urgency of need for the supplies or services

 (5) Any other pertinent facts and circumstances

(d) The CO should consider the following in lieu of termination for default:
AOC Order 34-1 Contracting Manual, July 14, 2022 132

 (1) Permitting the contractor, surety or guarantor to continue performing the contract under a 

revised delivery schedule

 (2) Permitting the contractor to continue performing the contract through a subcontract or other 

business arrangement with an acceptable third party

 (3) Executing a no-cost termination agreement when the requirement for the supplies or 

services no longer exists and there are no damages to the AOC

(e) Reprocurement.

 (1) The CO will determine whether to repurchase similar supplies or services and hold the 

contractor liable for any excess costs associated with the repurchase. Repurchase should 

only be considered if supplies or services are still required after termination. The repurchase

must be undertaken within a reasonable time after termination and try to minimize cost. If 

an award to the next successful offeror or from the original solicitation is fair and 

reasonable, the offeror is determined to be responsible, and the offer is still valid; the CO

may proceed with award without further competition.

 (2) When a fixed-price supply or service contract is terminated for default, as part of settlement, 

the contractor may be liable for excess repurchase costs only if a replacement contract is 

issued within a reasonable period of time after the notice of default is issued. In construction 

contracts terminated for default, the uncompleted structure may be taken over by the AOC.

 (3) If a settlement cannot be agreed upon, the issue concerning the equitable adjustment may be 

regarded as a question of fact under the AOC Disputes Clause inserted into the contract 

using the Matrix Checklist in effect at the time of solicitation.

13.3. Contract Disputes and Appeals

13.3.1. Authority

Public Law 110-161, established a Contract Appeals Board for the legislative branch at the 

GAO and made certain parts of the Contract Disputes Act apply to the AOC. COs shall insert the 

Disputes clause using the Matrix Checklist in effect at the time of solicitation.

13.3.2. Procedures

(a) Contract disputes may arise over the respective rights and obligations of the parties. Any 

disputes and appeals arising from AOC contracts and POs shall be processed in accordance with 

the AOC Disputes Clause inserted into the contract using the Matrix Checklist in effect at the 

time of solicitation.

(b) The CO shall attempt to settle the dispute amicably without resorting to the procedures 

provided in the AOC Disputes Clause. The CO will convene whatever meetings or conferences 

that are necessary and negotiate in good faith concerning the merits of the dispute and the

parties’ positions.

(c) CO’s Final Decision (COFD).

 (1) When all attempts to settle a dispute amicably fail, the contracting office must issue a 

decision under the Disputes Clause. The CO will request that the contractor submit written 

evidence substantiating the disputed amount. The contractor has the burden to establish the 

amount proposed. The CO will review all available facts pertinent to the dispute. The CO
AOC Order 34-1 Contracting Manual, July 14, 2022 133

will obtain assistance of legal, technical and professional experts. 

(2) Only the Chief DCA or Chief SSMMD, as applicable, has the authority to sign and issue a 

CO’s final decision. All COs preparing final decision letters shall use the below closing 

paragraph:

This is the final decision of the CO. You may appeal this decision to the Government 

Accountability Office Contract Appeals Board. If you decide to appeal, you must, within 

90 days from the date you receive this decision, mail or otherwise furnish written notice 

to the Government Accountability Office Contract Appeals Board at 441 G Street, N.W., 

Room 7182, Washington, DC 20548, Phone: 202.512.3342 Fax: 202.512.9749 Email: 

CAB@gao.gov. A copy of such notice of appeal shall be simultaneously mailed or 

otherwise furnished to the Architect of the Capitol, U.S. Capitol Building, Room SB-16, 

Washington, DC 20515. The notice shall indicate that an appeal is intended, reference 

this decision and identify the contract by number. With regard to appeals to the 

Government Accountability Office Contract Appeals Board, you may, solely at your 

election, proceed under the board’s small claims procedures for claims of $50,000 or 

less or its accelerated procedures for claims of $100,000 or less. Note, however, that 

unlike the Contract Disputes Act of 1978 (41 U.S.C. 601, et seq.), the Legislative 

Branch Contract Disputes Act, P.L. 110-161 (31 U.S.C. 702 Note), does not allow an 

appeal directly in the United States Court of Federal Claims.

(d) When the CO receives a notice of appeal from GAO or a contractor, they will date/time 

stamp the notice and notify the Chief DCA or Chief SSMMD, as applicable and OGC.

(e) Preparing the Appeal File. Within 30 days of receipt of the notice of appeal, the CO, will 

compile five copies of the appeal file (Rule 4 file) with OGC advice and assistance, who will 

coordinate with the GAO. Since the appeal file will be available to the contractor, no privileged 

information or documents and no analysis of the merits of the appeal or the law applicable 

thereto will be included. The appeal file must contain the following information:

 (1) The finding of fact and the decision from which the appeal is taken and the letter(s) or other 

documents of claim in response to which the decision was issued

 (2) The contract and pertinent plans, specifications, modifications and change orders

 (3) Transcripts of any testimony taken during the course of proceedings and affidavits or 

statements of any witnesses on the matter in dispute made before the filing of the notice of 

appeals

 (4) Any additional material information

(f) Within 30 days of receipt of the notice of appeal, the CO, with OGC advice and assistance, 

will compile a comprehensive report of the matter in dispute. The objective of the report is to 

provide all facts affecting the dispute.

 (1) The comprehensive report will be forwarded through the CO’s chain of command to OGC. 

It will not be furnished to the GAO or to the contractor.

 (2) The comprehensive report will include the following:

(i) A factual summary of events leading to the dispute

(ii) The names and addresses of all potential witnesses

(iii)A signed statement or summary by each government/AOC witness reflecting the facts to 
AOC Order 34-1 Contracting Manual, July 14, 2022 134

which the witness will be able to testify and a statement as to the expected availability of 

each government/AOC witness at the hearing

(iv)An analysis of the contractor’s position and a discussion of the validity thereof

(v) A memorandum by OGC analyzing the legal issues involved in the dispute and comments

upon the adequacy of the findings of fact and the legal sufficiency of the decision

(g) Witness Expenses. Travel and per diem costs incurred by witnesses concerning the appeal and 

necessary preparation will be paid by the requiring AOC jurisdiction.

(h) With OGC advice and assistance, the Chief DCA or Chief SSMMD, as applicable, or 

designee should:

 (1) Carefully review the appeal file and the comprehensive report

 (2) Ensure that the findings on which the COFD is based adequately address the issues 

involved, that the decision is consistent with the findings, and that it is proper in form and

substance

 (3) Ensure that the appeal file and comprehensive report are completed and that the evidence 

contained in them supports the CO’s decision

 (4) Advise the CO either to furnish additional support for any decision from which a timely 

appeal has been taken, or to withdraw it if it is clear from the contract provisions or the 

applicable law that the decision is not sufficiently supported by available and competent 

evidence or is erroneous

(5) Not more than 10 days after taking the action prescribed in (4) above, notify the OGC of the 

nature of the action being taken and an estimated date on which the additional support will 

be furnished or a date that the decision will be withdrawn

 (6) Not more than 10 days after receiving the comprehensive report, forward it and the appeal 

file to OGC with:

 (i) Evaluations, conclusions and recommendations

 (ii) Any additional evidence

 (7) Ensure that assistance is rendered to OGC in obtaining additional evidence or in making 

other necessary preparations for presenting the AOC’s position before the GAO

(i) Copies Furnished. When the GAO renders an opinion, copies of the opinion will be sent by 

certified mail to the attorneys for the CO and the contractor. A motion for reconsideration of the 

decision may be filed with the GAO within 30 days of receipt of the opinion unless the total 

contract amount is less than $10,000 and/or the appellant has previously waived the right to 

appeal. The GAO decision is final.

13.4. Novation and Name Change Agreements

This section prescribes policies and procedures for:

(a) Recognition of a successor in interest to government contracts when contractor assets are 

transferred

(b) Recognition of a change in a contractor’s name

(c) Execution of novation agreements and change-of-name agreements by the CO
AOC Order 34-1 Contracting Manual, July 14, 2022 135

13.4.1. Responsibility for Executing Agreements

The CO is responsible for processing and executing novation and change-of-name agreements.

13.4.2. Processing Agreements

(a) If a contractor wishes the government to recognize a successor in interest to its contracts or a 

name change, the contractor must submit a written request to the CO. 

(b) The responsible CO shall:

 (1) Identify and request that the contractor submit the information necessary to evaluate the 

proposed agreement for recognizing a successor in interest or a name change. 

 (2) Notify each contract administration office and contracting office affected by a proposed 

agreement for recognizing a successor in interest, and provide those offices with a list of all 

affected contracts.

 (3) Request submission of any comments or objections to the proposed transfer within 30 days 

after notification. Any submission should be accompanied by supporting documentation.

(c) Upon receipt of the necessary information, the responsible CO shall determine whether or not 

it is in the government’s interest to recognize the proposed successor in interest on the basis of:

 (1) The comments received from the affected contract administration offices and contracting 

offices.

 (2) Any factor relating to the proposed successor’s performance of contracts with the 

government that the government determines would impair the proposed successor’s ability 

to perform the contract satisfactorily.

(d) The execution of a novation agreement does not preclude the use of any other method 

available to the CO to resolve any other issues related to a transfer of contractor assets, including 

the treatment of costs.

(e) Any separate agreement between the transferor and transferee regarding the assumption of 

liabilities (e.g., long-term incentive compensation plans, cost accounting standards 

noncompliances, environmental cleanup costs and final overhead costs) should be referenced 

specifically in the novation agreement.

(f) Before novation and change-of-name agreements are executed, the responsible CO shall 

ensure that OGC has reviewed them for legal sufficiency.

(g) The CO shall:

 (1) Forward a signed copy of the executed novation or change-of-name agreement to the 

transferor and to the transferee

 (2) Retain a signed copy in the case file

(h) Following distribution of the agreement, the CO shall:

 (1) Prepare an SF30 incorporating a summary of the agreement and attaching a complete list of 

contracts affected

 (2) Retain the original SF30 with the attached list in the case file
AOC Order 34-1 Contracting Manual, July 14, 2022 136

 (3) Send a signed copy of the SF30, with attached list to the transferor and to the transferee

 (4) Send a copy of this SF30 with attached list to each contract administration office or 

contracting office involved, which shall be responsible for further appropriate distribution

13.4.3. Applicability of Novation Agreements

(a) 41 U.S.C. § 15 prohibits transfer of government contracts from the contractor to a third party. 

The government may, when in its interest, recognize a third party as the successor in interest to a 

government contract when the third party’s interest in the contract arises out of the transfer of:

 (1) All the contractor’s assets

 (2) The entire portion of the assets involved in performing the contract for the effect of novation 

agreements after bid opening but before award; examples of such transactions include, but 

are not limited to:

(i) Sale of these assets with a provision for assuming liabilities

(ii) Transfer of these assets incident to a merger or corporate consolidation

(iii) Incorporation of a proprietorship or partnership, or formation of a partnership

(b) A novation agreement is unnecessary when there is a change in the ownership of a contractor 

as a result of a stock purchase, with no legal change in the contracting party, and when that 

contracting party remains in control of the assets and is the party performing the contract. 

However, when there is a purchase of assets or a stock purchase, there may be issues related to 

the change in ownership that appropriately should be addressed in a formal agreement between 

the contractor and the government.

(c) When it is in the government’s interest not to concur in the transfer of a contract from one 

company to another company, the original contractor remains under contractual obligation to the 

government, and the contract may be terminated for reasons of default, should the original 

contractor not perform.

(d) When considering whether to recognize a third party as a successor in interest to government 

contracts, the CO shall identify and evaluate any significant organizational conflicts of interest. 

If the CO determines that a conflict of interest cannot be resolved, but that it is in the best interest 

of the government to approve the novation request, a request for a waiver may be submitted to 

the Chief DCA or Chief SSMMD, as applicable.

(e) When a contractor asks the government to recognize a successor in interest, the contractor 

shall submit to the CO three signed copies of the proposed novation agreement and one copy 

each, as applicable, of the following:

 (1) The document describing the proposed transaction, e.g., purchase/sale agreement or MOU

 (2) A list of all affected contracts between the transferor and the government, as of the date of 

sale or transfer of assets, showing for each, as of that date, the:

(i) Contract number and type

(ii) Name and address of the contracting office

(iii) Total dollar value, as amended

(iv) Approximate remaining unpaid balance.

 (3) Evidence of the transferee’s capability to perform

 (4) Any other relevant information requested by the CO
AOC Order 34-1 Contracting Manual, July 14, 2022 137

(f) Except as provided in paragraph (g) of this section, the contractor shall submit to the CO one 

copy of each of the following documents, as applicable, as the documents become available:

 (1) An authenticated copy of the instrument effecting the transfer of assets; e.g., bill of sale, 

certificate of merger, contract, deed, agreement or court decree

 (2) A certified copy of each resolution of the corporate parties’ boards of directors authorizing 

the transfer of assets

 (3) A certified copy of the minutes of each corporate parties’ stockholder meeting necessary to

approve the transfer of assets

 (4) An authenticated copy of the transferee’s certificate and articles of incorporation, if a 

corporation was formed for the purpose of receiving the assets involved in performing the 

government contracts

 (5) The opinion of legal counsel for the transferor and transferee stating that the transfer was 

properly effected under applicable law and the effective date of transfer

 (6) Balance sheets of the transferor and transferee as of the dates immediately before and after 

the transfer of assets, audited by independent accountants

 (7) Evidence that any security clearance requirements have been met

 (8) The consent of sureties on all contracts listed under paragraph (e)(2) of this section if bonds 

are required, or a statement from the transferor that none are required

(g) If the government has acquired the documents during its participation in the pre-merger or 

pre-acquisition review process, or the government’s interests are adequately protected with an 

alternative formulation of the information, the CO may modify the list of documents to be 

submitted by the contractor.

(h) When recognizing a successor in interest to a government contract is consistent with the 

government’s interest, the CO shall execute a novation agreement with the transferor and the 

transferee. It shall ordinarily provide in part that:

 (1) The transferee assumes all the transferor’s obligations under the contract

 (2) The transferor waives all rights under the contract against the government

 (3) The transferor guarantees performance of the contract by the transferee (a satisfactory 

performance bond may be accepted instead of the guarantee)

 (4) Nothing in the agreement shall relieve the transferor or transferee from compliance with any 

federal law

(i) The CO shall use the appropriate form for agreements when the transferor and transferee are 

corporations and all the transferor’s assets are transferred. This form may be adapted to fit 

specific cases and may be used as a guide in preparing similar agreements for other situations.

13.5. Value Engineering

13.5.1. Processing Value Engineering Change Proposals (VECP)

(a) Instructions to the contractor for preparing a VECP and submitting it to the government are 

included in paragraphs (c) and (d) of the value engineering clauses, upon receiving a VECP, the 

CO or other designated official shall promptly process and objectively evaluate the VECP in 

accordance with agency procedures and shall document the contract file with the rationale for 
AOC Order 34-1 Contracting Manual, July 14, 2022 138

accepting or rejecting the VECP. 

(b) The CO is responsible for accepting or rejecting the VECP within 45 days from its receipt by 

the government. If the government will need more time to evaluate the VECP, the CO shall 

notify the contractor promptly in writing, giving the reasons and the anticipated decision date. 

The contractor may withdraw, in whole or in part, any VECP not accepted by the government 

within the period specified in the VECP. Any VECP may be approved, in whole or in part, by a 

contract modification incorporating the VECP. Until the effective date of the contract 

modification, the contractor shall perform in accordance with the existing contract. If the 

government accepts the VECP, but properly rejects units subsequently delivered or does not 

receive units on which a savings share was paid, the contractor shall reimburse the government 

for the proportionate share of these payments. If the VECP is not accepted, the CO shall provide 

the contractor with prompt written notification, explaining the reasons for rejection. 

(c) The following government decisions are unilateral decisions made solely at the discretion of 

the government: 

 (1) The decision to accept or reject a VECP.

 (2) The determination of collateral costs or collateral savings.

 (3) The decision as to which of the sharing rates apply when the value engineering clause is 

used.

 (4) The CO’s determination of the duration of the sharing period and the contractor’s sharing 

rate.

13.5.2. Sharing Arrangements

(a) Supply or Service Contracts. 

 (1) The sharing base for acquisition savings is the number of affected end items on contracts of 

the contracting office accepting the VECP. The sharing rates (government/contractor) for 

net acquisition savings for supplies and services are based on the type of contract, the value 

engineering clause or alternate used, and the type of savings, as follows:
AOC Order 34-1 Contracting Manual, July 14, 2022 139

Government/Contractor Shares of Net Acquisition Savings

(Figures in Percent)

Contract Type

Sharing Agreement

Incentive

(Voluntary)

Program Requirement

(Mandatory)

Instant Contract 

Rate

Concurrent and 

Future Contract 

Rate

Instant Contract 

Rate

Concurrent and 

Future Contract 

Rate

Fixed-price (includes 

fixed-price-award-fee; 

excludes other fixed-price 

incentive contracts)

*50/50 *50/50 75/25 75/25

Incentive (fixed-price or 

cost) (other than award fee) (**) *50/50 (**) 75/25

Cost-reimbursement 

(includes cost-plus-awardfee; excludes other costtype incentive contracts)

***75/25 ***75/25 85/15 85/15

* The CO may increase the contractor’s sharing rate to as high as 75 percent for each VECP. 

** Same sharing arrangement as the contract’s profit or fee adjustment formula. 

*** The CO may increase the contractor’s sharing rate to as high as 50 percent for each VECP.

 (2) Acquisition savings may be realized on the instant contract, concurrent contracts and future 

contracts. The contractor is entitled to a percentage share of any net acquisition savings. Net 

acquisition savings result when the total of acquisition savings becomes greater than the 

total of government costs and any negative instant contract savings. This may occur on the 

instant contract or it may not occur until reductions have been negotiated on concurrent 

contracts or until future contract savings are calculated, either through lump-sum payment 

or as each future contract is awarded. 

 (i) When the instant contract is not an incentive contract, the contractor’s share of net 

acquisition savings is calculated and paid each time such savings are realized. This may 

occur once, several times, or, in rare cases, not at all

 (ii) When the instant contract is an incentive contract, the contractor shares in instant contract 

savings through the contract’s incentive structure. In calculating acquisition savings under 

incentive contracts, the CO shall add any negative instant contract savings to the target 

cost or to the target price and ceiling price and then offset these negative instant contract 

savings and any government costs against concurrent and future contract savings

 (3) The contractor shares in the savings on all affected units scheduled for delivery during the 

sharing period. The contractor is responsible for maintaining, for three years after final 

payment on the contract under which the VECP was accepted, records adequate to identify 

the first delivered unit incorporating the applicable VECP.

 (4) Contractor shares of savings are paid through the contract under which the VECP was 

accepted. On incentive contracts, the contractor’s share of concurrent and future contract 

savings and of collateral savings shall be paid as a separate firm-fixed-price contract line 

item on the instant contract.
AOC Order 34-1 Contracting Manual, July 14, 2022 140

 (5) Within three months after concurrent contracts have been modified to reflect price 

reductions attributable to use of the VECP, the CO shall modify the instant contract to 

provide the contractor’s share of savings.

 (6) The contractor’s share of future contract savings may be paid as subsequent contracts are 

awarded or in a lump-sum payment at the time the VECP is accepted. The lump-sum 

method may be used only if the CO has established that this is the best way to proceed and 

the contractor agrees. The CO ordinarily shall make calculations as future contracts are 

awarded and, within three months after award, modify the instant contract to provide the 

contractor’s share of the savings. For future contract savings calculated under the optional 

lump-sum method, the sharing base is an estimate of the number of items that the CO will 

purchase for delivery during the sharing period. In deciding whether or not to use the more 

convenient lump-sum method for an individual VECP, the CO shall consider:

 (i) The accuracy with which the number of items to be delivered during the sharing period can 

be estimated and the probability of actual production of the projected quantity

 (ii) The availability of funds for a lump-sum payment

 (iii) The administrative expense of amending the instant contract as future contracts are

awarded

(b) Construction Contracts. Sharing on construction contracts applies only to savings on the 

instant contract and to collateral savings. The government’s share of savings is determined by 

subtracting government costs from instant contract savings and multiplying the result by (1) 45

percent for fixed-price contracts or (2) 75 percent for cost-reimbursement contracts. 

13.5.3. Sharing Alternative – No Cost Settlement Method

In selecting an appropriate mechanism for incorporating a VECP into a contract, the CO shall 

analyze the different approaches available to determine which one would be in the government’s 

best interest. COs should balance the administrative costs of negotiating a settlement against the 

anticipated savings. A no-cost settlement may be used if, in the CO’s judgment, reliance on other 

VECP approaches likely would not be more cost-effective and the no-cost settlement would 

provide adequate consideration to the government. Under this method of settlement, the 

contractor would keep all of the savings on the instant contract and all savings on its concurrent 

contracts only. The government would keep all savings resulting from concurrent contracts 

placed with other sources, savings from all future contracts and all collateral savings. Use of this 

method must be by mutual agreement of both parties for individual VECPs.

13.5.4. Relationship to other incentives

Contractors should be offered the fullest possible range of motivation, yet the benefits of an 

accepted VECP should not be rewarded both as value engineering shares and under performance, 

design-to-cost or similar incentives of the contract. To that end, when performance, design-tocost or similar targets are set and incentivized, the targets of such incentives affected by the 

VECP are not to be adjusted because of the acceptance of the VECP. Only those benefits of an 

accepted VECP not rewardable under other incentives are rewarded under a value engineering 

clause.
AOC Order 34-1 Contracting Manual, July 14, 2022 141

13.6. Contract Closeout

(a) Time standards for closing out contract files are as follows:

(1) Files for small purchase contracts using simplified acquisition procedures shall be 

considered closed out when all supplies, services (including A/E), or construction procured 

has been received and final payment has been made.

(2) Files for firm-fixed-price contracts, other than small purchases should be closed within six 

months of final payment to include release of retainage when applicable.

(3) Files for all other contracts should be closed within 12 months of contract completion.

(4) A contract file shall not be closed if:

(i) The contract is in litigation or under appeal; or

(ii) In the case of a termination, all termination actions have not been completed

(b) For all contracts with an outstanding balance, when full performance on a contract is 

achieved, the COR shall provide a modification request form to the CO. For supplies and 

services, the CO may receive an email from a COR or POC as applicable. Both notifications 

require outlining the un-invoiced funds and corresponding accounting lines to be de-obligated or 

provide a request for the CO to obtain a final invoice.

(c) Follow the close out procedures within FMS and the AOC document retention and disposal 

policy as established by the AOC Records Management and Archives Branch in effect when the 

file is closed.

(d) The contract closeout process consists of the following elements:

 (1) Ensuring all requirements of the contract have been met:

 (i) Contractor performance ratings are entered into the CPARS in accordance with the chart 

below:

A/E Services >$30,000 for total fee, including 

construction services and site visits

Construction >$550,000

Operational Support Services >$5,000,000 

Information Technology >$1,000,000

Other Services >$1,000,000

 (2) Obtaining a properly executed Release of Claims from the contractor

 (3) Documentation of final payment:

 (i) Before final payment, the CO/COR shall obtain from the contractor a fully executed 

Release of Claims form. COs shall not authorize final payment until receipt of the Release 

of Claims form is confirmed by the COR. The CO must ensure no approvals for final 

payment are made without a fully executed Release of Claims form in the contract file

 (ii) COs shall ensure that CORs require the contractor to return all GFP (i.e., badges, 

documents, supplies and other items) before authorizing final payment

 (4) Documentation that funds were de-obligated, where appropriate

 (5) Supervisory review of completed contract closeout procedures

(e) A Contract Completion Statement shall be completed in its entirety after final payment is 

made for all contracts and orders greater than $250,000. Small purchases under $250,000 shall 

be considered closed out upon final payment with a $0.00 balance in contracted funds.
AOC Order 34-1 Contracting Manual, July 14, 2022 142

APPENDIX A. SUPERSEDED PUBLICATIONS

A-1 Orders

Number Title Date

34-01-01 AOC Procurement Division Order 

System and Authorities June 19, 2006

34-02-01 Definitions May 6, 2003

34-06-01 Competition Requirements January 27, 2012

34-07-01 Acquisition Planning August 17, 2012

34-13-01 Small Purchases August 16, 2006

34-13-02 Government Purchase Cards May 10, 2011

ME 34-22-01

Contractor Workforce Employment 

Eligibility Verification – AOC Use of 

the E-Verify Program

December 21, 2012

ME 34-09-01 AOC Suspension and Debarment 

Program June 10, 2016

ME 34-11-01 Training Requirements for COTRs May 17, 2013

ME 34-13-03 Request for Small Purchase Form March 30, 2012

34-15-01 Contracting by Negotiation June 10, 2005

34-19-01 Small Business Set Asides October 1, 2009

ME 34-19-01 Policy Requirements ... small 

business subcontracting goals February 22, 2008

ME 34-37-01 Service Contracting July 8, 2011

34-42-01 Contract Administration May 25, 2005

34-43-01 Contract Modifications May 2, 2005

B34-18-01 Emergency Procurement December 2, 2010
AOC Order 34-1 Contracting Manual, July 14, 2022 143

A-2 Standard Operating Procedures (SOPs)

PART DATE

1. Standard Operating Procedure System

1-1 Standard Operating Procedures 04/10/09

1-2 Ratification of Unauthorized Commitments 04/10/09

4. Administrative Matters

4-1 Contract File Maintenance 05/15/09

4-2 Distribution of Contractual Documents 02/19/08

4-4 Contract Closeout 03/10/09

4-7 Review of Contractual Actions 12/22/09

4-9 POP System 08/27/10

4-10 Receipt & Handling of Offers 03/19/10

4-13 Purchase Card Review Process 12/16/09

4-15 Vendor Request Form 05/02/08

5. Publicizing Contract Actions

5-1 Publicizing Contract Actions – FEDBIZOPPS 06/15/10

9. Contractor Qualifications

9-1 Determination of Responsibility 10/22/08

11. Describing Agency Needs

11-2 Liquidated Damages 04/07/10

13. Small Purchase Procedures

13-1 Small Purchase Procedures and Modifications 03/09/07

13-2 Small Purchases Files 12/07/11

15. Contracting by Negotiation

15-1 Amendment of Request for Proposals 04/10/09

15-2 Award of Contract 01/17/08

15-5 Source Selection Instruction 05/17/01

16. Types of Contracts

16-1 Contract Type – Fixed Price 05/02/11

17. Special Contracting Methods

17-1 Options 12/18/09

19. Small Business Programs

19-1 Subcontracting Plans 10/01/10

22 Application of Labor Laws to AOC Acquisitions

 22-1 Wage Determinations –Svc Contract Act and Davis Bacon Act05/15/09

28. Bonds and Insurance

28-1 Performance/Payment Bond Review 11/20/01

28-2 Consent of Surety 04/25/05

29. Taxes
AOC Order 34-1 Contracting Manual, July 14, 2022 144

29-1 Federal, State and Local Tax Exemptions 04/07/04

33. Protests, Disputes and Appeals

33-1 Disputes and CO’s Final Decision 03/20/08

42. Contract Administration and Audit Services

42-1 Rescission of COTR Appointment 07/06/04

42-2 CPARS 03/16/09

42-3 CO Review of COTR Performance 04/03/13

43.1 Modifications

 43-1 Contract Modifications 04/27/09
AOC Order 34-1 Contracting Manual, July 14, 2022 145

A-3 Information Letters

IL # Subject Date

2005-4A Retainage 10/26/ 2005

2006-01 Brand Name or Equal 11/20/2005

2006-02 Indefinite Delivery contracts (IDC) 11/04/2005

2006-03 Trade-In of Used Equipment and Excess Spare Parts 11/10/2005

2006-04 Temporary Employees and TAPS 11/10/2005

2006-06 COTR Do's and Don'ts 01/24/2006

2006-07 IT Purchases 01/25/2006

2006-10 Lease of Mobile Office Trailer 09/26/2006

2006-11 Contractor/AOC Employee Participation in Christmas 

/Holiday Parties

12/04/2006

2009-01 Purchase Cardholder Training 01/07/2009

2009-02 Requirements for Buy American 05/13/2009

2010-01 JWOD and the AbilityOne Program 03/19/ 2010

2011-01 AOC Policy on Personal Services Contracts 07/08/2011

2012-02 AOC Use of the E-Verify Program 12/21/2012

2021-01 AOC Use of the E-Verify Program 06-16-21